Latest news with #EgyptEconomy
Zawya
a day ago
- Business
- Zawya
Egypt shows early signs of economic stabilisation amid global headwinds: HSBC
Simon Williams, HSBC's chief economist for Central and Eastern Europe, Middle East and Africa (CEEMEA), and Helen Belopolsky, the bank's global head of geopolitical risk, presented their outlook on Egypt's economy to clients and stakeholders during a series of exclusive briefings held last week at HSBC Egypt's Head Office. "Inflation is stabilizing, the currency is holding, the budget deficit is easing, and interest rates are starting to fall. But while this means Egypt's rebalancing is now well underway, ongoing policy discipline will be key to complete the process, particularly with Suez revenues, the energy sector under pressure, and geopolitical risks still unresolved," Williams said. 'As global geopolitical dynamics continue to evolve, it is increasingly important for the businesses to adapt to persistent volatility, with Egypt's reform program well underway, the country is strongly positioned to capitalize on the opportunities emerging from today's shifting geopolitical landscape,' Belopolsky added. Todd Wilcox, HSBC Egypt deputy chairman and chief executive officer, commented, 'The fundamental opportunities in Egypt have shifted. Liquidity in the market is improving, and trade flows are starting to shift. New investors see Egypt as a manufacturing hub; this will help boost exports and reduce future foreign currency (FX) risk. For 44 years, HSBC has been a trusted partner to businesses in Egypt, and our commitment to their growth and success remains steadfast.' Addressing nearly 100 business leaders and clients in Cairo, Williams and Belopolsky emphasized that despite ongoing geopolitical headwinds, Egypt is showing early signs of economic stabilization. They noted that the country is currently halfway through an economic adjustment phase, supported by political stability and rising regional opportunities, which together are laying the foundation for renewed momentum. The briefings also served as a forum for participants to exchange perspectives on navigating the shifting global and regional landscape. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
2 days ago
- Business
- Zawya
Egypt's PMI rises to 49.5 in May, still below growth threshold
Arab Finance: Business conditions in Egypt's non-oil private sector softened in May, with the latest S&P Global Purchasing Managers' Index (PMI) report showing tentative signs of stabilization as contractions in output and new orders eased. The headline PMI rose to 49.5 in May from 48.5 in April, its highest level in three months, but remained below the 50.0 threshold that separates growth from contraction. The latest reading, however, surpassed the long-run average of 48.2, signaling a relative downturn in operating conditions for the third month in a row. Fewer firms reported declines in customer demand during May, leading to only slight reductions in output and new business at slower rates compared to April. Still, companies cut purchasing activity at the fastest pace since October 2024, with total employment falling for a fourth consecutive month. Most job cuts were attributed to not replacing voluntary leavers, with a little change in unfinished business. Input cost inflation accelerated to its highest level this year, driven by rising supplier prices and volatile exchange rates, particularly against the USD. Businesses pointed to higher fuel, cement, and paper costs, while wage expenses increased slightly. In response, selling prices rose sharply in May for seven months, following flatlining in April, as firms passed on part of the cost burden to customers. Despite these challenges, business confidence improved slightly from April. However, expectations for future activity remained historically subdued, with many firms citing persistent inflationary pressures and weak demand as ongoing concerns. © 2020-2023 Arab Finance For Information Technology. All Rights Reserved. Provided by SyndiGate Media Inc. (
Zawya
2 days ago
- Business
- Zawya
Egypt's economic reset: Signs of stabilization, path to sustainable growth
Simon Williams, HSBC's Chief Economist for Central & Eastern Europe, the Middle East and Africa (CEEMEA), and Helen Belopolsky, HSBC's Global Head of Geopolitical Risk, recently shared their outlook on Egypt's economic trajectory at an exclusive client event held at HSBC Egypt's Head Office in Cairo. Addressing an audience of nearly 100 business leaders and stakeholders, they discussed Egypt's evolving economic landscape amid regional and global uncertainties. Despite persistent geopolitical challenges, the experts pointed to clear signs of stabilization and emerging opportunities that could accelerate Egypt's economic rebound. 'Inflation is stabilizing, the currency is holding, the budget deficit is easing, and interest rates are beginning to fall,' said Simon Williams. 'These are strong indicators that Egypt's economic rebalancing is well underway. However, continued policy discipline will be critical to sustaining this progress—particularly as revenues from the Suez Canal and the energy sector come under pressure and geopolitical risks remain unresolved.' Helen Belopolsky emphasized the broader context of global volatility, stating: 'As international dynamics continue to shift, adaptability becomes essential. Egypt's ongoing reform programme places it in a strong position to benefit from new regional and global opportunities.' Todd Wilcox, Deputy Chairperson and CEO of HSBC Egypt, said: 'Egypt's fundamentals are evolving. Liquidity is improving, trade patterns are changing, and the country is gaining appeal as a regional manufacturing hub. This could drive export growth and reduce long-term foreign currency risk. For over four decades, HSBC has supported businesses in Egypt, and our commitment remains as strong as ever.' The event fostered valuable dialogue on navigating today's complex economic environment, reinforcing HSBC's role as a trusted advisor and partner in Egypt's growth journey. © 2024 Daily News Egypt. Provided by SyndiGate Media Inc. ( Daily News Egypt
Zawya
2 days ago
- Business
- Zawya
Egypt's non-oil private sector contraction slows in May, PMI shows
CAIRO - Activity in Egypt's non-oil private sector edged closer to stability in May, with softer contractions in new business and output, according to an S&P Global survey released on Tuesday. The headline seasonally adjusted S&P Global Egypt Purchasing Managers' Index (PMI) rose to 49.5 from 48.5 in April, remaining below the 50.0 threshold that separates growth from contraction. Output and new orders continued to decline, but at a slower pace compared to April, as fewer companies reported cutbacks in customer sales. However, businesses reduced purchasing activity at the fastest rate in seven months and trimmed their workforces, with employment dropping for the fourth month in a row. The output sub-index strengthened to 49.5 from 47.4 in April, while the new orders subindex rose to 49.1 from 47.4. Input price inflation increased sharply, driven by rising supplier charges and volatile exchange rates. This led to a fresh rise in selling prices as firms passed on some of the cost increases to customers. "Although many of the key PMI metrics continued to indicate a deterioration in business conditions in May, the overall pace of decline was not as sharp as in April and softer than the survey's historical trend," said S&P Global Market Intelligence economist David Owen. "Output and new orders fell at the slowest rates for three months, helped by renewed growth in the manufacturing sector." Non-oil businesses in Egypt remained cautious about the future, with optimism slightly improved from April but still weak by historical standards. Concerns over stubborn price pressures and low demand continued to weigh on output expectations, S&P Global said. The future output index improved to 53.0 from 52.7 in April.
Reuters
2 days ago
- Business
- Reuters
Egypt's non-oil private sector contraction slows in May, PMI shows
CAIRO, June 3 (Reuters) - Activity in Egypt's non-oil private sector edged closer to stability in May, with softer contractions in new business and output, according to an S&P Global survey released on Tuesday. The headline seasonally adjusted S&P Global Egypt Purchasing Managers' Index (PMI) rose to 49.5 from 48.5 in April, remaining below the 50.0 threshold that separates growth from contraction. Output and new orders continued to decline, but at a slower pace compared to April, as fewer companies reported cutbacks in customer sales. However, businesses reduced purchasing activity at the fastest rate in seven months and trimmed their workforces, with employment dropping for the fourth month in a row. The output sub-index strengthened to 49.5 from 47.4 in April, while the new orders subindex rose to 49.1 from 47.4. Input price inflation increased sharply, driven by rising supplier charges and volatile exchange rates. This led to a fresh rise in selling prices as firms passed on some of the cost increases to customers. "Although many of the key PMI metrics continued to indicate a deterioration in business conditions in May, the overall pace of decline was not as sharp as in April and softer than the survey's historical trend," said S&P Global Market Intelligence economist David Owen. "Output and new orders fell at the slowest rates for three months, helped by renewed growth in the manufacturing sector." Non-oil businesses in Egypt remained cautious about the future, with optimism slightly improved from April but still weak by historical standards. Concerns over stubborn price pressures and low demand continued to weigh on output expectations, S&P Global said. The future output index improved to 53.0 from 52.7 in April.
