Egypt records 69.6% YoY rise in remittances
Remittances from Egyptians working abroad rose by 69.6 percent year on year between July and May of the 2024-25 fiscal period, reaching a record $32.8 billion.
RIYADH: Remittances from Egyptians working abroad rose by 69.6 percent year on year between July and May of the 2024-25 fiscal period, reaching a record $32.8 billion, new figures showed.
Data released by the country’s central bank show that remittances in May increased 24.2 percent annually to reach about $3.4 billion, representing the highest level of inflows ever recorded in the fifth month of the year, according to a statement.
The sharp increase underscores growing confidence among expatriates in the country’s financial system and reflects a broader improvement in Egypt’s external economic position.
This improvement is also linked to recent measures to stabilize the exchange rate and promote formal remittance channels.
These policies have contributed to Egypt’s net international reserves rising to $48.5 billion at the end of May, up from $47.8 billion in March.
In a statement, the central bank noted: “Likewise, remittances increased during the period January/May 2025 by 59 percent YoY to record around $15.8 billion (compared to about $9.9 billion).”
The rebound in remittance flows comes amid broader economic reforms pursued under an International Monetary Fund-backed stabilization program.
These reforms have bolstered Egypt’s foreign currency position and helped attract more international capital.
In May, Prime Minister Mostafa Madbouly announced that Egypt recorded real gross domestic product growth of 3.9 percent during the first half of the fiscal year.
Private sector investment surged by 80 percent, while foreign direct investment rose by around 17 percent.
Inflation, however, remains a key challenge.
The annual urban headline inflation rate accelerated to 16.8 percent in May, up from 13.9 percent in the previous month, mainly driven by continued pressure on non-food prices.
These inflation trends come as Egypt’s broader economic landscape continues to be shaped by both domestic and global pressures.
The government is navigating a delicate recovery amid external shocks, ongoing structural reforms, and efforts to manage public debt.
In February, Moody’s affirmed Egypt’s “Caa1” long-term foreign and local currency ratings with a positive outlook, citing improved debt servicing capacity, higher reserves, and falling borrowing costs.
The ratings agency noted that recent currency devaluation and flotation helped boost foreign exchange reserves and reduce debt vulnerabilities.
While a “Caa1” rating denotes high credit risk, the positive outlook reflects the government’s efforts to control inflation and stabilize interest rates.
Egypt’s credit rating is much lower than that of its Middle East and North African neighbors, such as Saudi Arabia, which was ranked Aa3 with a stable outlook in November, and the UAE, which was rated Aa2 in the same month.
Data released by the country’s central bank show that remittances in May increased 24.2 percent annually to reach about $3.4 billion, representing the highest level of inflows ever recorded in the fifth month of the year, according to a statement.
The sharp increase underscores growing confidence among expatriates in the country’s financial system and reflects a broader improvement in Egypt’s external economic position.
This improvement is also linked to recent measures to stabilize the exchange rate and promote formal remittance channels.
These policies have contributed to Egypt’s net international reserves rising to $48.5 billion at the end of May, up from $47.8 billion in March.
In a statement, the central bank noted: “Likewise, remittances increased during the period January/May 2025 by 59 percent YoY to record around $15.8 billion (compared to about $9.9 billion).”
The rebound in remittance flows comes amid broader economic reforms pursued under an International Monetary Fund-backed stabilization program.
These reforms have bolstered Egypt’s foreign currency position and helped attract more international capital.
In May, Prime Minister Mostafa Madbouly announced that Egypt recorded real gross domestic product growth of 3.9 percent during the first half of the fiscal year.
Private sector investment surged by 80 percent, while foreign direct investment rose by around 17 percent.
Inflation, however, remains a key challenge.
The annual urban headline inflation rate accelerated to 16.8 percent in May, up from 13.9 percent in the previous month, mainly driven by continued pressure on non-food prices.
These inflation trends come as Egypt’s broader economic landscape continues to be shaped by both domestic and global pressures.
The government is navigating a delicate recovery amid external shocks, ongoing structural reforms, and efforts to manage public debt.
In February, Moody’s affirmed Egypt’s “Caa1” long-term foreign and local currency ratings with a positive outlook, citing improved debt servicing capacity, higher reserves, and falling borrowing costs.
The ratings agency noted that recent currency devaluation and flotation helped boost foreign exchange reserves and reduce debt vulnerabilities.
While a “Caa1” rating denotes high credit risk, the positive outlook reflects the government’s efforts to control inflation and stabilize interest rates.
Egypt’s credit rating is much lower than that of its Middle East and North African neighbors, such as Saudi Arabia, which was ranked Aa3 with a stable outlook in November, and the UAE, which was rated Aa2 in the same month.
