Arab Finance: The Egyptian economy witnessed remarkable developments during the first nine months of fiscal year (FY) 2024/2025, with current account deficit retreating by 22.6% to $13.2 billion from $17.1 billion in the same period of FY2023/2024, the Central Bank of Egypt’s (CBE) data showed.

However, the balance of payment (BoP) shifted from an overall surplus of $4.1 billion in the same period a year earlier to an overall deficit of $1.9 billion in the July 2024-March 2025 period.

The shift was mainly due to a drop in the net inflows of the capital and financial account, registering  $7.7 billion. This is compared to inflows of $20  billion in the corresponding period, which included the Ras El Hekma deal at $15 billion.

Remittances of Egyptians working abroad hiked by 82.7% year-on-year (YoY) to $26.4 billion from $14.5 billion, while the investment income deficit declined by 13.4% to $12.2 billion from $14 billion.

Tourism revenues jumped by 15.4% to $12.5 billion in the nine months, versus $10.9 billion. This was attributed to the pickup in the number of tourist nights to 134.3 million nights when compared to 116.4 million nights in the same period in FY2023/2024.

Non-oil trade deficit increased by $4.3 billion to register $28 billion in the first nine months of FY 2024/2025, marking an annual rise from $23.7 billion.

The surge was driven by a jump in the non-oil merchandise imports, which surpassed that of the non-oil merchandise exports.

As for the Suez Canal activities, the transit receipts shrank by 54.1% YoY to record only $2.6 billion when compared to $5.8 billion. This was attributed to a 61.9% plunge in both the net to just 360.3 million tons, while the number of transiting vessels dropped by 44.8%.

Such a drop was caused by the ongoing Red Sea tensions in maritime navigation, which forced several shipping companies to divert their shipping routes.

Meanwhile, the capital and financial account registered a net inflow of $7.7 billion in the period from July 2024 to March 2025, against $20  billion a year earlier.

Foreign Direct Investment (FDI) in Egypt recorded a net inflow of $9.8 billion in the first nine months of FY 2024/2025, lower than $23.7 billion in the corresponding period under the Ras El Hekma deal.

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