Egypt August PMI 48.9 vs 47.2 in July

The video discusses Egypt's economic situation following its decision to float its currency, which helped clear a backlog of foreign currency requests. Despite positive PMI figures indicating recovery, the economy is still contracting slightly. The external economy is strong, but domestic demand is hindered by high inflation and interest rates. A broader recovery is expected once inflation decreases, potentially leading to lower interest rates.

What are the two contrasting aspects of Egypt's economy mentioned in the text?

What factors are expected to influence the potential for economic recovery in Egypt?