Arab Finance: Egypt’s current account deficit is expected to increase to 3.3% of gross domestic product (GDP) during fiscal year (FY) 2025/2026, compared to 2.2%, as per a report from Fitch Solutions’ research unit BMI.
The reports indicated that the US-Iran conflict led to higher energy bills, slower tourist arrivals in the second half (H2) of FY 2025/2026, and a delayed recovery in Suez Canal revenues.
BMI noted that external financing pressures will intensify, with a higher current account deficit and portfolio outflows of $8-$9 billion since mid-February.
During the Egyptian Family Iftar held on March 14th, President Abdel Fattah El-Sisi revealed that Egypt lost around $10 billion (EGP 500 billion) in Suez Canal revenues amid regional instability.
