Egypt transforms FY2021/2022 deficit into surplus of $882M in FY2022/2023, CBE

Cairo – 8 October 2023: The Central Bank of Egypt recently revealed that, boosted by the tourism sector and the Suez Canal, Egypt managed to reverse its $10.5 billion deficit in the Balance of Payment (BoP) for FY2021/2022, achieving a surplus of $882 million in FY2022/2023.

A vital source of foreign currency for Egypt, the Suez Canal recorded a significant surge of 25.2 percent in revenues during the fiscal year 2022/2023, reaching an all-time high of $8.8 billion. This growth was credited to several factors, including Russian/Ukrainian war and ongoing development projects led by the Suez Canal Authority (SCA).

Egypt's tourism sector also reported strong growth, with revenues increasing by an impressive 26.8 percent on a yearly basis in FY2022/2023, soaring to $13.6 billion.

The CBE revealed that net inflows of Foreign Direct Investments (FDI) grew from $8.9 billion in FY2021/2022 to $10 billion in FY2022/2023, indicating increased investor confidence in the country's financial landscape. FDI outflows dropped significantly in FY2022/2023, registering only $3.8 billion compared to the $21 billion recorded in FY2021/2022.

The amount of remittances from Egyptians working abroad registered a decline of 30.8 percent in FY2022/2023, totaling $22.1 billion, down from $31.9 billion in FY2021/2022. Remittances accounted for 7.8 percent of the country's GDP according to 2021 World Bank figures.

The petroleum trade balance witnessed a decline to $410 million in FY2022/2023 compared to $4.4 billion in FY2021/2022, led by reduced petroleum exports, including a $988.1 million decrease in natural gas exports, which amounted to $13.81 billion in FY2022/2023. Imports of petroleum products, including natural gas, also declined slightly to $13.4 billion in FY2022/23, down from $13.54 billion a year earlier.

Egypt’s non-oil trade deficit experienced a fall of 34 percent in FY2022/2023, dropping from $47.8 billion in FY2021/2022 to $31.6 billion. Significant cuts in imports and a slight decline in exports contributed to this decline, according to the CBE.

Non-oil exports dipped slightly to $25.8 billion in FY2022/23 from $25.9 billion in FY2021/2022, while non-oil imports decreased by 22.2 percent, totaling $57.4 billion in FY2022/23, down from $73.8 billion the previous year. The CBE highlighted decreases in exports of organic and inorganic compounds, household electrical appliances, animal and vegetable fats, greases and oils, and ready-made clothing.

Passenger car sales in Egypt experienced a significant 71 percent year-on-year drop from January to the end of June 2023, with only 26,869 units sold, according to a report by the Automotive Information Council (AMIC).