The BoP’s deficit was primarily driven by a sharp increase in the current account deficit, which surged to $5.9 billion from $2.8 billion in the first quarter of the previous fiscal year.
Annually, remittance inflows jumped by 45.3% in the first ten months of 2024, Minister of Investment and Foreign Trade Hassan El-Khatib revealed last week, reaching $23.7 billion, up from $16.3 billion during the same period in 2023.
In its report today, the ministry stated that spending on wages and employee compensation rose by 22.4%, reaching EGP 197.1 billion over four months, compared to EGP 160.9 billion in the same period of the previous fiscal year.
The bank estimates that Egypt’s economic growth will see an uptick in FY2025/2026, reaching 3.5%, according to their semi-annual MENA Economic Update - Growth in the Middle East and North Africa - highlighting ongoing economic challenges
The largest surge of inflows, approximately $40.5 billion, was recorded in the second half of the fiscal year, mainly due to the execution of the Ras El Hekma agreement valued at $35 billion
