Consumption in Egypt
Egypt - Consumption
Economic growth remains robust in October–December 2019
The economy expanded 5.6% year-on-year in the second quarter of FY 2020 (October–December 2019), which was unchanged from the growth rate of the first quarter.
Private consumption growth accelerated to 2.7% in October–December (July–September: +1.0% year-on-year), seemingly supported by lower inflation and cuts to the overnight deposit rate by the Central Bank, and despite an uptick in the unemployment rate to 8.0% from 7.8%. Meanwhile, government consumption expanded 6.8% in October–December, up from 4.0% in July–September. Less positively, total investment growth slowed to 10.4% in the three-month period ending December, down from 22.2% in the three-month period ending in September, despite interest rate cuts.
On the external front, exports of goods and services decreased 14.1% in October–December, after falling 9.7% in July–September, while imports fell 14.0%, after dropping 11.3% in July–September.
Going forward, forecasts from both the government and FocusEconomics Consensus Forecast panelists point to a clear economic deterioration from January 2020, most notably from March, when Egyptian authorities began imposing containment measures to reduce the spread of coronavirus, which included the suspension of flights and the temporary closure of most businesses. However, fiscal and monetary policy stimulus should moderate the downturn.
FocusEconomics Consensus Forecast panelists project the economy to expand 2.4% in FY 2020 and 4.5% in FY 2021.
Egypt - Consumption Data
|Consumption (annual variation in %)||-||-||-||-||-|
5 years of economic forecasts for more than 30 economic indicators.
|Bond Yield||13.70||0.0 %||Dec 31|
|Exchange Rate||16.04||0.0 %||Jan 01|
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May 14, 2020
At its scheduled monetary policy meeting 14 May, the Central Bank of Egypt (CBE) left the overnight deposit, overnight lending, and main operation rates unchanged at 9.25%, 10.25% and 9.75%, respectively.
May 11, 2020
The economy expanded 5.6% year-on-year in the second quarter of FY 2020 (October–December 2019), which was unchanged from the growth rate of the first quarter. Private consumption growth accelerated to 2.7% in October–December (July–September: +1.0% year-on-year), seemingly supported by lower inflation and cuts to the overnight deposit rate by the Central Bank, and despite an uptick in the unemployment rate to 8.0% from 7.8%.
May 10, 2020
Consumer prices increased 1.3% in April compared to the previous month, up from the 0.6% increase in March and mainly due to a sharper increase in food and vegetable prices.
May 5, 2020
Egypt’s Purchasing Managers’ Index (PMI), which measures business activity in the non-oil private sector, fell to 29.7 in April, down from 44.2 in March and the lowest reading since the current survey began in April 2011.
April 15, 2020
Consumer prices were increased 0.6% in March compared to the previous month, up compared to the flat reading in February.