Consumer durables is a cataloguing of consumer goods that are not essential to be bought very often as they are fashioned in a way so as to last for an extended period of time. Profits in the consumer durables sector were most profoundly…
Although Egypt is seeing a leap in petrochemicals capacities in 2016, volatile feedstock supplies and
depressed domestic growth will limit growth in production volumes. The Egyptian pound's depreciation
should help mitigate the situation, although it is exerting a negative impact on local consumption due to
high inflation, while external markets - particularly in the EU and Turkey - are also coming under pressure.
As such, the outlook for the industry will take until mid-2017 to improve.
While local production is benefitting from a weaker exchange rate and import difficulties, it has not escaped
a squeeze on margins as cost pressures have risen. The local market will be sluggish, although depreciation
will favour local producers. The automotive sector remains in a slump, which is undermining consumption
of a range of rubber and plastic products used in car manufacturing. However, construction activity is
holding up and should help spur some growth in segments such as PVC.