The country’s current account deficit in the first 9 months of FY 2021/2022 was registered as $13.6 billion, despite the $3 billion rise in the trade balance deficit
Egypt’s balance of payments (BoP) saw an overall deficit of $7.3 billion during the first 9 months of the previous fiscal year (FY 2021/2022), compared to a surplus of $1.79 billion in the first 9 months of FY 2020/2021, explained the Central Bank of Egypt (CBE) in a statement on Sunday.
In its statement, the CBE pointed out that the deficit seen during these months was recorded mainly between the January – March 2022 months.
The country’s current account deficit in the first 9 months of FY 2021/2022 was registered as $13.6 billion, despite the $3 billion rise in the trade balance deficit.
Egypt’s non-oil trade deficit jumped by 22.5% during the 9-month period to around $37.7 billion, compared with FY 2020/2021’s $30.7 billion. Merchandise trade balance deficit increased by $3 billion due to a $14.9 billion rise in commodity imports (oil and non-oil).
In the July 2021 – March 2022 period, investment income deficit grew by 27.2% annually, reaching about $11.3 billion, compared to the previous fiscal year’s $8.9 billion. For Egypt’s capital and financial account, net inflows declined by 36.6% annually in the 9-month period to $10.8 billion.
“This is a reflection of what the world is witnessing at the present time from unprecedented inflationary waves as a result of the return of economic activity to the sectors that were closed due to the Coronavirus pandemic and the negative effects of the Russian-Ukrainian crisis in conjunction with the sanctions imposed by the West on Russia, which contributed to the unprecedented rise in energy and the basic commodity prices,” the CBE commented.
