CAIRO - 15 April 2026: Egypt’s balance of payments recorded a noticeable improvement during the first half of fiscal year 2025/2026, supported by stronger remittance inflows, rising tourism and Suez Canal revenues, and higher foreign direct investment, according to figures released by the Central Bank of Egypt.
The central bank said the current account deficit fell by 13.6 percent to $9.5 billion, compared with $10.9 billion in the same period of the previous fiscal year.
It attributed the improvement to a 28.4 percent increase in net current transfers and a 20.6 percent rise in the surplus of the services balance, which reached $8.9 billion.
Remittances from Egyptians working abroad rose by 29.6 percent to $22.1 billion, up from $17.1 billion in the comparable period a year earlier.
Tourism revenues increased by 17.3 percent to $10.2 billion, compared with $8.7 billion in the same period of the previous year.
Suez Canal revenues also climbed by 19 percent to $2.2 billion, up from $1.8 billion a year earlier.
Net foreign direct investment inflows rose to $9.3 billion, compared with $6 billion in the same period of the previous fiscal year.
The central bank said the increase in FDI was driven by $6.1 billion in inflows related to the establishment of new companies and capital increases in existing firms, the execution of the Alam El Roum deal worth $3.5 billion during the October-December 2025 period, and a rise in real estate investments by non-residents to $1 billion.
Portfolio investments posted net inflows of $5 billion, compared with net outflows of $3.2 billion in the same period a year earlier.
Still, the current account continued to face pressure from a wider petroleum trade deficit, which rose to $8.9 billion from $6.7 billion, driven by an increase in petroleum imports to $11.6 billion.
The non-petroleum trade deficit also widened to $22.8 billion from $20.8 billion, as non-oil merchandise imports increased to $41.1 billion, despite exports rising to $18.3 billion.
The investment income deficit rose by 8 percent to $8.6 billion, while foreign assets held by banks increased by around $9.7 billion. At the same time, reliance on external borrowing declined, with net repayments recorded for medium- and long-term loans and facilities.
Despite the improvement in a number of external indicators, the overall balance of payments posted a deficit of $2.1 billion during the period, compared with a deficit of $502.6 million in the corresponding period last year.
Comments
Leave a Comment