Egypt’s non-oil sector suffering under high inflation: Report
Egypt is experiencing rising inflation and the depreciation of its currency, but the country’s stock exchange is doing well and the IMF recently agreed to a massive aid package.
A leading credit rating agency released a dire report on the Egyptian economy Sunday.
The New York-based S&P Global said Egypt’s Purchasing Managers’ Index fell from 47.2 in December to 45.5 in January. This was the sharpest drop since late 2020.
“The reading indicated a sharp deterioration in the health of the non-oil sector that was one of the quickest seen in the current 26-month sequence of decline,” read the report.
The Purchasing Managers’ Index (PMI) measures economic trends in manufacturing and other non-oil sectors. It is based on surveys of supply chain managers. A PMI of below 50 indicates economic contraction, according to Investopedia.
