Egypt’s current account deficit drops 20.2% YoY in Q1 FY2022/23
Updated 2/2/2023 1:22:00 PM
ArabFinance: Egypt’s current account deficit fell by 20.2% year-on-year (YoY) in the first quarter (Q1) of the current fiscal year (FY) 2022/2023 to $3.2 billion from $4 billion in the same quarter a FY earlier, according to a statement from the Central Bank of Egypt (CBE) on February 2nd.
“This came mainly due to the increase in both tourism revenues and merchandise exports (oil and non-oil), together with the rise in Suez Canal receipts,” the CBE said in its balance of payment report.
Tourism revenues rose by 43.5% YoY to record $4.1 billion in the July-September period of 2022, up from $2.8 billion, due to a 47.1% increase in the number of tourist nights to 43.6 million, and the rise in the number of tourist arrivals to Egypt by 52.2% to 3.4 million.
Remittances from Egyptian abroad declined by 20.9% YoY, hitting $6.4 billion, compared to $8.1 billion during the Q1 of the elapsed FY 2021/2022.
The balance of payments report also revealed the capital and financial account recorded a net inflow of $4.4 billion, while the foreign direct investments (FDI) in Egypt doubled to $3.3 billion from $1.6 billion.
“On the other hand, the period witnessed withdrawal of portfolio investments in Egypt by non-residents to register an outflow of $2.2 billion,” the CBE said.
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