Despite some positive developments in Egypt's foreign currency inflows, Fitch Solutions has pointed out ongoing challenges to the country's trade deficit, particularly related to declining revenues from the Suez Canal.
The number of ships passing through the Suez Canal totaled 20,000, a decrease of around 6,000 compared to approximately 26,000 ships in FY2022/2023.
During a panel at the Global Logistics Forum, Rabie shared that recent statistics reveal a decline in vessel transit, with the number of ships passing through the canal dropping from 25,887 in the FY2022/2023 to 20,148 in FY2023/2024.
This sharp decline is attributed to ongoing Houthi attacks on vessels navigating the Red Sea, prompting many shipping lines to divert to safer routes, particularly around the Cape of Good Hope.
However, after economic reforms in March 2024, the sector experienced a 4.7% growth in the last quarter, its first positive performance since Q1 of FY 2022/2023.
