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Egypt's economy hit with downgrades as Sisi seeks third term

Egypt continues to reel from high inflation, a weak exchange rate and more. Rare protests occurred in the country following President Abdel Fattah al-Sisi’s reelection bid announcement.
A school boy walks near an election campaign bus for Egypt's President Abdel Fattah al-Sisi adorned with his image, his slogan "long live Egypt", and C-shaped balloons, as Sisi's supporters prepare for a rally in Giza, the twin-city of the Egyptian capital, on October 2, 2023. (Photo by Khaled DESOUKI / AFP) (Photo by KHALED DESOUKI/AFP via Getty Images)

A leading financial services firm released a negative assessment of the Egyptian economy on Tuesday following President Abdel Fattah al-Sisi's confirmation that he will seek a third term in office.

S&P Global Market Intelligence reported that Egypt’s Purchasing Managers' Index (PMI) was 48.7 in September — a four-month low and 0.5 point drop from the 49.2 score in August, according to a Tuesday report.

The PMI is a measure of economic trends in the manufacturing and service sectors. A score above 50 indicates economic expansion, while a score below 50 shows contraction.

S&P Global economist David Owen said that Egyptian non-oil companies experienced a “record pileup of incomplete orders” in September due to high inflation and a “lack of raw material supply.” These factors, along with the weak exchange rate between the Egyptian pound and the US dollar, “added to a generally subdued level of confidence toward future activity as well as another sharp reduction in purchasing levels,” he said in the report.

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