Back to the complete issue
Monday, 11 December 2017

Egypt’s BoP records a surplus of USD 5.1 bn

More good news a year on from the EGP float as Egypt’s balance of payments recorded a surplus of USD 5.1 bn during 1Q2017-18, an improvement from a surplus of USD 1.9 bn in the same period of the previous fiscal year, according to a CBE report (pdf) out yesterday. This came on the back of a significant improvement in Egypt’s current account deficit, which narrowed 65.7% to USD 1.6 bn in 1Q2017-18 from a deficit of USD 4.8 bn during the same period a year earlier.

Egypt’s trade deficit declined 5.0% to USD 8.9 bn for the quarter, down from USD 9.4 bn in 1Q2016-17. This largely came on the back of a 11.0% increase in merchandise exports to USD 5.8 bn from USD 5.3 bn in the same period last year. Egypt’s oil exports grew 16.8% to USD 1.8 bn in 1Q2017-18 from USD 1.5 bn a year earlier.

Non-oil exports rose 8.6% to USD 4.1 bn in the first quarter of the state’s fiscal year, up from USD 3.7 bn in the same period a year ago.

Merchandise imports were basically flat, rising just 0.7% to USD 14.8 bn.

Score another big win for tourism: Tourism receipts for the quarter grew to USD 2.7 bn, up from USD 758 mn in 1Q2016-17, in another sign of how far the sector has come in one year.

Remittances are soaring: Improving nearly 40% USD 6.0 bn, from USD 4.3 bn last year, also thanks to a cheaper local currency.

Net FDI fell slightly to USD 1.6 bn in 1Q2017-18 from USD 1.9 bn in the same period last year despite a 84.2% rise in investment in the oil industry, CBE data showed. N

Finance Minister Amr El Garhy said that foreign investment in Egyptian securities hit USD 19 bn as of 6 December since the EGP float, Reuters reports. Foreign portfolio investment rose to USD 7.5 bn in the CBE’s reporting period, thanks mainly to increased foreign holdings in Egyptian treasuries, which stood at USD 7.4 bn at the end of the period.

Suez Canal revenues also continued to be among the weak links, growing a marginal USD 82 mn to USD 1.4 bn in 1Q2017-18.

Enterprise is a daily publication of Enterprise Ventures LLC, an Egyptian limited liability company (commercial register 83594), and a subsidiary of Inktank Communications. Summaries are intended for guidance only and are provided on an as-is basis; kindly refer to the source article in its original language prior to undertaking any action. Neither Enterprise Ventures nor its staff assume any responsibility or liability for the accuracy of the information contained in this publication, whether in the form of summaries or analysis. © 2022 Enterprise Ventures LLC.

Enterprise is available without charge thanks to the generous support of HSBC Egypt (tax ID: 204-901-715), the leading corporate and retail lender in Egypt; EFG Hermes (tax ID: 200-178-385), the leading financial services corporation in frontier emerging markets; SODIC (tax ID: 212-168-002), a leading Egyptian real estate developer; SomaBay (tax ID: 204-903-300), our Red Sea holiday partner; Infinity (tax ID: 474-939-359), the ultimate way to power cities, industries, and homes directly from nature right here in Egypt; CIRA (tax ID: 200-069-608), the leading providers of K-12 and higher level education in Egypt; Orascom Construction (tax ID: 229-988-806), the leading construction and engineering company building infrastructure in Egypt and abroad; Moharram & Partners (tax ID: 616-112-459), the leading public policy and government affairs partner; Palm Hills Developments (tax ID: 432-737-014), a leading developer of commercial and residential properties; Mashreq (tax ID: 204-898-862), the MENA region’s leading homegrown personal and digital bank; Industrial Development Group (IDG) (tax ID:266-965-253), the leading builder of industrial parks in Egypt; Hassan Allam Properties (tax ID:  553-096-567), one of Egypt’s most prominent and leading builders; and Saleh, Barsoum & Abdel Aziz (tax ID: 220-002-827), the leading audit, tax and accounting firm in Egypt.