VenturesNow

Egypt’s non-oil private sector continues on downward trend

Published

1 year ago

July 6, 2023

A recent survey by S&P Global has shown that activity in Egypt’s non-oil private sector continued on a downward trend in June.

According to the survey, the Purchasing Managers’ Index (PMI) increased from 47.8 in May to 49.1 in June, but it remained below the 50.0 mark, which distinguishes expansion from contraction, for the 31st consecutive month. Employment also decreased for the seventh consecutive month, while output decreased once more, albeit at a slower rate of 48.8 versus 46.3 in May.

“Egypt’s non-oil private sector economy remained under pressure at the end of the second quarter. Price pressures, liquidity issues, and weak demand drove total business activity volumes lower,” S&P Global said.

“That said, both output and new orders fell at weaker rates, pushing the headline index up.”

According to principal economist at S&P Global, Joe Hayes, “However, despite positive directional movements in a number of sub-indices, business confidence fell to its second-lowest level on record, highlighting a somber mood amongst businesses across Egypt’s non-oil private economy.”

Egypt, which has occasionally received assistance from other Arab League members in recent years, is presently experiencing financial strain. Inflation is also a problem, as core inflation increased to 40.3% in May from 38.6% in April. The inflation figures for June are yet to be released.

VenturesNow

Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

VenturesNow

Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”