Egypt and Lebanon See PMI Declines Over Regional Economic Challenges
-
Raven Ruma
- . April 3, 2025
- . Update: April 3, 2025 10:25 pm
Business activity declined very modestly for Egypt’s non-oil private sector services during March as per S&P Global research reports. The March Purchasing Managers’ Index for Egypt’s private sector fell to 49.2 after registering 50.1 in February and crossed below the 50 mark which indicates falling business activity. The weakening purchase requirements made Egyptian companies slow their business and buying efforts.
According to David Owen from S&P Global Market Intelligence, Egypt underwent a temporary decline in its non-oil industry. In March of 2019 Egypt experienced the lowest input cost increase in almost five years which helped control rising prices. A declining US dollar helped bring down rising prices which could mean upcoming decreases in inflation.
Meanwhile, Lebanon’s PMI dropped to 47.6 in March from 50.5 in February, with businesses reporting:
- Weaker output and new orders
- Subdued tourism activity
- Declining foreign sales
- Cautious purchasing activities
BLOMINVEST Bank chief economist Ali Bolbol identifies the direct negative impacts of crisis events on the functioning of Lebanese private businesses. Lebanese companies remained hopeful about future success according to survey results which reached new highs since 2013.
Both nations take steps with IMF experts to make economic improvements. The IMF approved a $1.2 billion payment to Egypt during its latest financial program while Lebanon’s new official government reached out to the IMF to recover from past economic disasters. Lebanon and Egypt’s economic contractions stand apart from other regional economies which saw continuous growth in their PMIs.
