Economics
Another Stumble for Egypt as Business Activity Nears 3-Year Low
- Weak consumer demand is undercutting efforts to boost business
- Government is looking to private sector to sustain growth push
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Non-oil private sector growth in Egypt slowed to its lowest level in almost three years, dashing hopes for a rebound as weak consumer demand offset the potential boost of single-digit inflation.
The IHS Markit Purchasing Managers’ Index fell for the sixth consecutive month in January to 46, well below the 50 level that marks an expansion in business activity. The slump came even as inflation remained well within the central bank’s target range of 9%, plus or minus 3 percentage points by the fourth quarter of 2020.