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Current account deficit shrinks 20% during July -Sept. 2022 period | CBE

The BOP saw an overall surplus of $523.5 million in Q1 of FY2022/2023

By: Business Today Egypt

Sun, Feb. 5, 2023

Egypt’s current account deficit decreased by 20% in Q1 of FY2022/2024 to $3.2 billion as foreign direct investment (FDI) inflows, exports, and tourism revenues rose, explained the Central Bank of Egypt (CBE) on Thursday. Q1 of FY2021/2022 registered $4 billion.

The country’s balance of payments (BOP) saw improvements along with the rest of the world, wrote the CBE in an official statement, adding that it was also supported by an increase in both oil and non-oil exports, and Suez Canal receipts.

The BOP saw an overall surplus of $523.5 million in Q1 of FY2022/2023.

Net FDI inflows doubled between July-September 2022 to hit $3.3 billion, pushed by $1 billion in sales of local entities to foreign investors and $1 billion worth of investments in existing companies.

Investments into the securities portfolio by non-residents reached $2.2 billion, bringing total investments to $4.4 billion, the CBE explained.

Tourism revenues surged by 43% year-on-year (YoY) to $4.1 billion, driven by a 50% hike in arrivals to hit around 3.4 million tourists.

Suez Canal receipts climbed by 19% to $2 billion in the July-September period, supported by a 14% increase in the tonnage of goods moving through the canal.

Egypt’s trade deficit narrowed by 18% to $9.1 billion, buoyed by a 13% increase in exports and a 4% drop in imports. Non-oil imports were down almost 10% YoY as the CBE pushes to curb imports while oil imports rose by more than a quarter.