Egypt’s current account deficit plunged by 77.2% to $1.8 billion in the July to December period compared to the $7.8 billion in the previous corresponding period due to the decline in trade deficit, according to a statement from the Central Bank of Egypt (CBE).
The trade deficit fell by 28.4% to $15.5 billion during the period. Non-oil trade deficit improved by $6.5 billion to $17.3 billion, compared to the $23.8 billion in the year-ago period, primarily due to a fall in non-oil merchandise imports by $6.3 billion.
Non-oil merchandise imports dropped by 17.3% to $30.2 billion from $36.5 billion in the year-ago period. The drop was mainly in the imports of passenger vehicles, telephones, and spare parts and accessories for cars and tractors.
A marginal increase of $124.8 million was recorded in the non-oil merchandise exports, reaching $12.9 billion, mainly due to the exports of gold, phosphate/mineral fertilizers, and transmitter and receiver devices of radio/television.
Surplus revenue from the service sector doubled due to the increase in both tourism revenues and Suez Canal receipts. The capital and financial account also recorded a net inflow of $2.8 billion as the net inflows of foreign direct investment (FDI) in Egypt rose to $5.7 billion. However, portfolio investments in Egypt realized a net outflow of $3 billion.
Egypt’s oil trade posted a surplus of $1.8 billion, compared to the $2.1 billion in the year-ago period, due to the rise in oil exports by $690.6 million, owing to a $2 billion increase in natural gas exports.
The country’s oil imports went up by $980.3 million, which reflects the increase in the imports of oil products by $554.1 million and natural gas by $382.4 million. Revenues from the tourism sector rebounded by 25.7% to $7.3 billion compared to the $5.8 billion in the year-ago period. The rebound was driven by the rise in the number of tourist nights by 27.2% to 78.4 million and tourist arrivals to Egypt by 27.5% to 6.8 million.
