Egypt's private sector experienced a notable decline in March, with the country's purchasing managers' index (PMI) falling to its lowest level in nearly two years, according to recent economic data.

The deterioration in private sector performance comes as regional conflicts continue to impact economic conditions across the Middle East. The PMI, which measures business activity in the private sector, serves as a key indicator of economic health, with readings below 50 indicating contraction.

The decline reflects broader challenges facing Egypt's economy, which has been grappling with various pressures including currency devaluation, inflation, and reduced foreign investment flows. The private sector weakness adds to concerns about the country's economic recovery trajectory.

Separately, Egyptian officials reported conducting diplomatic communications with US envoy Steve Witkoff and regional counterparts, though specific details of these discussions were not immediately disclosed. The timing of these diplomatic contacts comes amid ongoing regional tensions and Egypt's efforts to maintain stability in its economic and political relationships.

Egypt's economy has faced mounting pressures in recent years, with the government implementing various reform measures while seeking international support to address fiscal challenges and maintain economic stability.