Egypt's Current Account Deficit Narrows to $13.2 Billion in Nine Months through March
Egypt's central bank reports a decrease in current account deficit due to increased remittances and tourism revenue.
Egypt's current account deficit has narrowed to $13.2 billion over the nine months ending in March 2025, compared to $17.1 billion in the same period of the previous year, as per the latest data from Egypt's central bank released on Tuesday.
The reduction in the deficit can be attributed to a significant increase in remittances from Egyptians working abroad and a higher services surplus, largely driven by increased tourism revenue.
In contrast, oil exports declined to $4.2 billion, down from $4.6 billion previously, while oil imports rose to $14.5 billion, an increase of $1.2 billion.
This shift is linked to Egypt's efforts to bolster its fuel oil and liquefied natural gas supplies for power generation, following concerns over supply disruptions, notably from Israel due to regional conflicts.
Additionally, revenues from the Suez Canal decreased to $2.6 billion compared to $5.8 billion previously, as a result of ongoing attacks on ships by Yemeni Houthis in the Red Sea.
The tourism sector showed resilience with revenue reaching $12.5 billion between July 2024 and March 2025, up from $10.9 billion in the same period last year.
Remittances also saw a substantial increase to $26.4 billion, compared to $14.5 billion previously.
However, foreign direct investment declined to $9.8 billion, down from $23.7 billion.
The reduction in the deficit can be attributed to a significant increase in remittances from Egyptians working abroad and a higher services surplus, largely driven by increased tourism revenue.
In contrast, oil exports declined to $4.2 billion, down from $4.6 billion previously, while oil imports rose to $14.5 billion, an increase of $1.2 billion.
This shift is linked to Egypt's efforts to bolster its fuel oil and liquefied natural gas supplies for power generation, following concerns over supply disruptions, notably from Israel due to regional conflicts.
Additionally, revenues from the Suez Canal decreased to $2.6 billion compared to $5.8 billion previously, as a result of ongoing attacks on ships by Yemeni Houthis in the Red Sea.
The tourism sector showed resilience with revenue reaching $12.5 billion between July 2024 and March 2025, up from $10.9 billion in the same period last year.
Remittances also saw a substantial increase to $26.4 billion, compared to $14.5 billion previously.
However, foreign direct investment declined to $9.8 billion, down from $23.7 billion.
