Country Insight: Egypt – August 2021
The Egyptian economy has proven resilient in the face of the Covid-19 pandemic, but more recent PMI figures suggest that the recovery has since stagnated. The Delta variant has only recently been detected within Egypt’s borders, but the threat of a fourth wave of infections is real.
What you will learn from this report:
- The rollout of vaccinations has slowed and sudden efforts to ramp up the vaccination campaign probably won’t stave off a fourth wave of infections, which is expected in September.
- Consumer spending – which was already a key driver of economic growth in pre-pandemic times − has been supported by an accommodative monetary policy stance since the start of the pandemic.
- The tourism sector is expected to reach 2019 levels by 2024, but a faster-than-expected rollout of the domestic and global inoculation drive could see adjustments to this outlook.
Firms must brace for higher ‘new normal’ construction material prices
New research by Oxford Economics suggests that construction materials prices have shifted permanently higher due to the shocks of the past couple of years. Project managers and investors should anticipate costs being at least 15-20% higher in 2024 and onwards than in 2021.Find Out More
New Activity Trackers suggest momentum is waning
After a choppy first quarter of GDP data, our novel Activity Trackers (which incorporate proprietary daily sentiment data from Penta) suggest that economic momentum in EM Asia is on a softer trend in Q2 (at least outside of China) supporting our view of easing underlying inflationary pressures and diminishing appetite for further rate hikes.Find Out More