Egypt’s Minister of Finance Ahmed Kouchouk and Minister of Investments and Foreign Trade Hassan El-Khatib unveiled a new mechanism to settle exporters’ outstanding dues from the Export Development Fund, totaling EGP 60 billion for shipments made up until June 30, 2024, a statement showed on January 8. Disbursement plan Under the new mechanism, 50% of the outstanding dues for exporting companies will be paid in cash over the next four years, starting this year, totaling EGP 8 billion annually. El-Khatib and Kouchouk explained that the government intends to pay the first installment of these dues by January 2025. The remaining…
Author: Rana Salem
President Abdel Fattah El-Sisi approved a bill to increase Egypt’s share in the International Monetary Fund (IMF) by 50% on January 9, part of a broader decision by the IMF’s General Assembly to raise the quotas of all member countries by 50%. This decision, formalized through Presidential Decree No. 247, also includes the reservation of the right to ratify, according to the Egyptian Gazette. Lower borrowing costs Moataz Yeken, chief economist at Lynx Strategic Business Advisors, told Business Monthly that Egypt’s increased IMF share will allow the country to access a larger borrowing limit without higher costs. This increase reduces…
Egypt’s annual headline inflation continued its downward trajectory for the third consecutive month in December, reaching 23.4%, down from 25% in November and 26.3% in October, according to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS) on January 9. Inflation slows in December Headline inflation has primarily decreased due to a drop in the prices of several essential commodities, particularly vegetables, which fell by 14%. As a result, prices in the food and non-alcoholic beverages category dropped by 1.7%, contributing significantly to the inflation slowdown. However, not all sectors experienced price reductions. Fruits, garments, oils, and…
Egypt’s non-oil private sector saw worsening business conditions in December, with output and new orders shrinking at the fastest pace in eight months, according to a private survey by S&P Global. Inflation and currency volatility drive challenges The seasonally adjusted S&P Global Egypt Purchasing Managers’ Index (PMI), a key measure of operating conditions in the non-oil private sector, fell to 48.1 in December from 49.2 in November. This marks the fourth consecutive month of contraction, with a reading below 50 signaling a decline. “The latest Egypt PMI data showed that the non-oil private sector’s anticipated recovery is unlikely to be…
Egypt’s Ministry of Planning, Economic Development, and International Cooperation has forecasted a 4% growth rate for the country’s Gross Domestic Product (GDP) in fiscal year (FY) 2024/2025, a statement showed on December 31. Q1 growth In the first quarter of FY 2024/2025, Egypt’s economy grew by 3.5%, up from 2.7% in the same quarter last year. The ministry attributed the growth to government reforms stabilizing the macroeconomy and improving public investment governance. These efforts boosted momentum in several sectors, especially transformative industries, despite a decline in Suez Canal revenues due to regional geopolitical challenges, the ministry noted. In Egypt, the…
Egypt’s food exports have reached $5.5 billion in the first eleven months of 2024, reflecting a 17% year-on-year increase, according to a statement released by the Food Export Council on December 31. This surge represents an $813 million increase from the $4.7 billion recorded during the January-November period of 2023, marking a record growth in recent years and positioning Egypt as an emerging force in the global food trade. Arab nations continue to lead as key importers Arab countries continue to be the largest importers of Egyptian food products, making up 53% of Egypt’s total food exports, valued at $2.94…