Egypt’s Ministry of Planning and Economic Development reviews the results of the PMI report for July 2021

The Ministry of Planning and Economic Development reviewed the results of the Purchasing Managers Index (PMI) report for July 2021, where the index reflects the performance of about 400 non-oil-producing private sector companies, including the industrial, construction, services, selling, retail and wholesale sectors.


The PMI report indicated that the index scored 49.1 points during July 2021, in addition to the Egyptian labor market moving to the expansion range in July 2021 for the first time since October 2019. 
This improvement was reflected in the results of the employment sub-index, which exceeded the 50 levels.
The aforementioned improvement recorded 50.3 in July compared to 48.7 in June.
 This comes in line with the latest data issued by the Central Agency for Public Mobilization and Statistics (CAPMAS), which indicated a decline in unemployment rates during the first quarter of 2021 to reach 7.4%, compared to 7.7% during the same quarter of last year.


 According to the report, the labor market is expected to expand further in the event of an increase in domestic demand, in light of the importance of the state’s stimulus to demand through large reconstruction and infrastructure projects.

At the level of the internal economic situation, the data of the PMI report reflects the success of the Egyptian state in overcoming the 3rd wave of the Coronavirus on the one hand, and the continuation of efforts and improvements that are taken following the vision and direction of the Egyptian state to stimulate demand and improve the business climate in Egypt and the non-oil private sector.



 The report referred to international reports on Egypt, which prove the success of the Egyptian state in balancing the health of citizens and economic performance.

The report indicated that Moody's affirmed Egypt's credit rating of B2 with a stable outlook, and the agency indicated in its latest review that this balances the "high exposure to shocks" with Egypt's track record of being able to overcome volatility.

 The International Monetary Fund (IMF) also expected that the Egyptian economy would achieve a growth of 2.8 percent in 2020/2021, provided that the recovery and revival would be stronger in the next fiscal year, bringing growth to 5.2 percent.
The investment bank, Renaissance Capital, also indicated that the Egyptian economy will grow by 4.5-5% in the second quarter of this year and that it will continue to rise during the rest of the year.