By using this site, you agree to the Privacy Policy and Terms of Use.
Accept
DailynewsegyptDailynewsegypt
  • Home
  • Business
    BusinessShow More
    Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman
    Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman
    June 1, 2023
    Egypt's new membership in New Development Bank enhances South-South cooperation: Al-Mashat
    Egypt’s new membership in New Development Bank enhances South-South cooperation: Al-Mashat
    June 1, 2023
    CIB signs MoU with LinkedIn learning to promote youth learning culture
    CIB signs MoU with LinkedIn learning to promote youth learning culture
    May 31, 2023
    Islamic banking in Egyptian market increases to EGP 544bn in March 2023
    Islamic banking in Egyptian market increases to EGP 544bn in March 2023
    May 31, 2023
    Banque du Caire’s net profit grows 29% to over EGP 1bn in 1Q 2023
    Banque du Caire’s net profit grows 29% to over EGP 1bn in 1Q 2023
    May 31, 2023
  • Politics
    PoliticsShow More
    Egypt and France discuss joint cooperation in the health sector
    Egypt and France discuss joint cooperation in the health sector 
    June 1, 2023
    AU praises Egypt's role in achieving sustainable peace in Africa despite challenges
    AU praises Egypt’s role in achieving sustainable peace in Africa despite challenges
    May 31, 2023
    Opinion| Russia and China promote stability in the Middle East after the US withdrawal from the region
    Opinion| Russia and China promote stability in the Middle East after the US withdrawal from the region
    May 31, 2023
    Opinion| The American debt crisis and the 2024 elections
    Opinion| The American debt crisis and the 2024 elections
    May 31, 2023
    Abdel Ghaffar affirms Egypt’s support for the Palestinian health sector
    Abdel Ghaffar affirms Egypt’s support for the Palestinian health sector
    May 31, 2023
  • Interviews
    InterviewsShow More
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    EFG Finance to launch unified platform gathering all its financing services: Alaa Al-Afifi
    May 31, 2023
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    I changed my artistic path to create ‘state of wonder’: Tarek Lotfi
    May 25, 2023
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    I adore Ramadan drama, ‘Telt Al-Talata’ series achieved great success: Ghada Abdel Razek
    May 8, 2023
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    We aim to establish Egypt as nearshore centre for Software AG for MET region: Rami Kichli
    April 29, 2023
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    Egypt-Spain relations witness remarkable development in recent years: Spanish ambassador in Cairo
    April 18, 2023
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Reading: Egypt continues to suffer from consequences of currency flotation: Focus Economics
Share
Notification
Latest News
Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman
Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman
Business
Egypt and France discuss joint cooperation in the health sector
Egypt and France discuss joint cooperation in the health sector 
Egypt Politics
Egypt's new membership in New Development Bank enhances South-South cooperation: Al-Mashat
Egypt’s new membership in New Development Bank enhances South-South cooperation: Al-Mashat
Business
CIB signs MoU with LinkedIn learning to promote youth learning culture
CIB signs MoU with LinkedIn learning to promote youth learning culture
Banking
AU praises Egypt's role in achieving sustainable peace in Africa despite challenges
AU praises Egypt’s role in achieving sustainable peace in Africa despite challenges
Politics Egypt
Aa
Aa
DailynewsegyptDailynewsegypt
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle
Have an existing account? Sign In
Follow US
  • Advertise
© 2023 DNE News. All Rights Reserved.
Dailynewsegypt > Blog > Business > Egypt continues to suffer from consequences of currency flotation: Focus Economics
Business

Egypt continues to suffer from consequences of currency flotation: Focus Economics

Mohamed Samir
Last updated: 2017/02/08 at 6:13 PM
By Mohamed Samir 3 Min Read
Share
SHARE

The Egyptian economy continues to suffer from the harsh consequences of the government’s reform programme. The liberalisation of the Egyptian pound has taken its toll on the prices of goods and a subdued demand as a result of skyrocketing inflation levels. Yet Egypt’s eagerness to comply with the International Monetary Fund’s (IMF) three-year plan has prompted a hasty return of many foreign investors to the country, according to Focus Economics’ February “Consensus Forecast Middle East & North Africa” report.

Moreover, as a result of the restored trust in the currency, inflows worth billions of US dollars have made their way to local banks, which in turn has bolstered the Central Bank’s international reserves, leading them to reach $26.363bn in January, marking the highest level witnessed since August 2011.

The report states that, despite the fact that the Emirates NDB Egypt Purchasing Managers’ Index (PMI) for the non-oil sector has slightly risen to 43.3 in January from 42.8 in December, the PMI index still lies below the 50 threshold that marks the difference between contraction and expansion of the non-oil private sector. One of the main factors leading to the decline is the soaring price of raw materials, which prompted firms to increase their average selling prices at the highest rate recorded so far.

Consequently, clients’ demand for non crucial goods has deteriorated, leading to the reduction of both output and input orders, forcing many companies to reduce their staff once again. Additionally, there has been a decrease in new non domestic orders as a result of rising security concerns in the region. Focus Economics panelists forecast a GDP growth of 3.4% for the fiscal year (FY) 2016/17, which is 1.8% lower than the government’s target of 5.4% GDP growth.

In regards to Egypt’s monetary sector, inflation reached a record high of 23.3% in December, the highest reading since August 2008, due to the build up in inflationary pressure as a result of the government’s decision to float the currency and to reduce fuel subsidies in November. Meanwhile, the annual average inflation has reached 13.8% in December, which is the highest level in seven years. Focus Economics forecasts an average inflation of 20.1%, and 13.6% for the calendar years of 2017 and 2018 respectively.

You Might Also Like

Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman

Egypt’s new membership in New Development Bank enhances South-South cooperation: Al-Mashat

CIB signs MoU with LinkedIn learning to promote youth learning culture

Islamic banking in Egyptian market increases to EGP 544bn in March 2023

Banque du Caire’s net profit grows 29% to over EGP 1bn in 1Q 2023

TAGGED: currency flotation, flotation, Focus Economics
Share this Article
Facebook Twitter Email Print
By Mohamed Samir
Mohamed Samir Khedr is an economic and political journalist, and analyst specialising in geopolitical conflicts in the Middle East, Africa and the Eastern Mediterranean. Over the past decade, he covered Egypt's and the MENA region's financial, business, and geopolitical updates. He is currently the Executive Editor of the Daily News Egypt. Twitter: https://twitter.com/Moh_S_Khedr LinkedIn: https://www.linkedin.com/in/mohamed-samir-khedr/
Previous Article Zahed Mohamed, Karim Abdel Gawad, and Zeina Mickawy stand in February’s championships
Next Article Sinai MPs call on families to suspend calls for strike  
Leave a comment

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Ad image
Ad image

Stay Connected

Facebook Like
Twitter Follow
Instagram Follow
Youtube Subscribe

Latest News

Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman
Egyptian economy offers great competitive advantage, diversified investment opportunities: Ayman Soliman
Business
Egypt and France discuss joint cooperation in the health sector
Egypt and France discuss joint cooperation in the health sector 
Egypt Politics
Egypt's new membership in New Development Bank enhances South-South cooperation: Al-Mashat
Egypt’s new membership in New Development Bank enhances South-South cooperation: Al-Mashat
Business
CIB signs MoU with LinkedIn learning to promote youth learning culture
CIB signs MoU with LinkedIn learning to promote youth learning culture
Banking
//
Egypt’s only independent daily newspaper in English. Discuss the country’s latest with the paper’s reporters, editors, and other readers.

Quick Link

  • Home
  • Business
  • Politics
  • Interviews
  • Culture
  • Opinion
  • Sports
  • Lifestyle

Sign Up for Our Newsletter

Subscribe to our newsletter to get our newest articles instantly!

© 2023 DNE News. All Rights Reserved.

Join Us!

Subscribe to our newsletter and never miss our latest news, podcasts etc..

Zero spam, Unsubscribe at any time.

Removed from reading list

Undo
Welcome Back!

Sign in to your account

Lost your password?