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Sunday, 17 April 2022

Current account deficit narrows in 2Q 2021-2022

Egypt’s current account deficit narrowed to USD 3.8 bn in 2Q 2021-2022, from USD 4.8 bn in the same period last year, calculating on the basis of central bank figures (pdf) released Thursday. The deficit also narrowed 5% on a quarterly basis from USD 4 bn in 1Q.

Thank tourism revenues and solid Suez Canal receipts: “Positive factors” contributing to the narrowing of the deficit included:

  • Tourism revenues more than tripled to USD 3 bn, rising 7.1% on a quarterly basis;
  • Suez Canal receipts rose almost 13% y-o-y to USD 1.7 bn, remaining stable on a quarterly basis.

The trade deficit remained unchanged from a year ago at around USD 10.7 bn and narrowed slightly on a quarterly basis from USD 11.1 bn. This came as exports and imports both rose, thanks in large part to the global spike in fuel and food prices:

  • Exports rose almost 80% y-o-y to USD 11.8 bn, up 34.1% on a quarterly basis.
  • Imports rose 30% y-o-y to USD 22.5 bn, up 13% on 1Q.

FDI declined on an annual and a quarterly basis: Inflows amounted to USD 1.6 bn during 2Q, down from USD 1.75 bn in the same quarter last year and USD 1.7 bn in 1Q. Portfolio flows saw a sharp reversal during the final quarter, registering USD 6.1 bn in net outflows compared to USD 3.5 bn in net inflows in 2Q 2021, and USD 3.6 bn in net inflows the previous quarter.

Remittances came in at USD 7.4 bn, down marginally y-o-y and falling some 8.7% on a quarterly basis.

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