Egypt Sees 65% Surge in Remittances from Expats in November 2024
Remittances to Egypt rise sharply amid economic reforms and currency devaluation
Egypt's remittances from expatriates surged by 65.4% year-on-year in November 2024, reaching $2.6 billion, according to the nation's central bank.
This significant increase follows economic reforms introduced in March, including the full flotation of the Egyptian pound, which was part of an agreement with the International Monetary Fund for an $8 billion loan aimed at stabilizing Egypt’s economy.
The pound's sharp depreciation has led to rising inflation and higher import costs, prompting more Egyptians to seek work abroad to earn in stronger currencies.
From July to November 2024, remittance inflows totaled approximately $13.8 billion, up 77% from the same period in 2023. Between January and November 2024, remittances reached $26.3 billion, a 47.1% annual increase.
These remittances have played a crucial role in bolstering Egypt's foreign currency reserves, which have seen significant growth.
Egypt's net international reserves (NIRs) reached a record $47.1 billion in December 2024, following a $157 million increase during the month.
The country’s reserves have grown by $11.9 billion compared to December 2023. Egypt's remittances, alongside the reserves, have helped stabilize the economy amid ongoing fiscal and monetary challenges.
Reports estimate that between 12 million and 14 million Egyptians live abroad, with the majority residing in the Gulf Cooperation Council countries.
Despite a primary budget surplus of 6.1% of GDP in fiscal year 2023/24, Egypt continues to face a budget deficit of 3.6% of GDP due to the heavy burden of debt servicing.
This significant increase follows economic reforms introduced in March, including the full flotation of the Egyptian pound, which was part of an agreement with the International Monetary Fund for an $8 billion loan aimed at stabilizing Egypt’s economy.
The pound's sharp depreciation has led to rising inflation and higher import costs, prompting more Egyptians to seek work abroad to earn in stronger currencies.
From July to November 2024, remittance inflows totaled approximately $13.8 billion, up 77% from the same period in 2023. Between January and November 2024, remittances reached $26.3 billion, a 47.1% annual increase.
These remittances have played a crucial role in bolstering Egypt's foreign currency reserves, which have seen significant growth.
Egypt's net international reserves (NIRs) reached a record $47.1 billion in December 2024, following a $157 million increase during the month.
The country’s reserves have grown by $11.9 billion compared to December 2023. Egypt's remittances, alongside the reserves, have helped stabilize the economy amid ongoing fiscal and monetary challenges.
Reports estimate that between 12 million and 14 million Egyptians live abroad, with the majority residing in the Gulf Cooperation Council countries.
Despite a primary budget surplus of 6.1% of GDP in fiscal year 2023/24, Egypt continues to face a budget deficit of 3.6% of GDP due to the heavy burden of debt servicing.
