Egypt’s balance of payment records deficit of $1.8B in H1 2018/19



Tue, 02 Apr 2019 - 01:57 GMT


Tue, 02 Apr 2019 - 01:57 GMT

FILE - CBE Headquarters

FILE - CBE Headquarters

CAIRO – 2 April 2019: Egypt’s balance of payments recorded a deficit of $1.8 billion in the first half of FY2018/2019 compared to a surplus of around $5.6 billion in the first half of FY2017/2018, according to the Central Bank of Egypt (CBE).

Data issued by CBE showed that the balance of payments deficit was the outcome of the $3.8 billion deficit of the account of current transactions up from $3.5 billion in the compared period. The capital and financial account surplus fell to $1.7 billion from $10.4 billion.

CBE also attributed the deficit to the net outflows from the investment portfolio worth $5.9 billion, while portfolio investments recorded an inflow of $8 billion in the first half of the last fiscal year (July-December 2017).

On the other side, the balance of payments data revealed positive results, including the increase in the export of goods jumped 18.4 percent by $2.2 billion to record $14.3 billion during July - December 2018 period compared to $12.1 billion dollars in the comparison period.

It also included the decline in payments on petroleum imports by 2.1 percent to record $5.8 billion due to the decrease in the quantities imported from petroleum products and crude, and to achieve self-sufficiency of natural gas.

The balance of oil trade achieved a surplus for the first time in more than four years, amounted to $150.8 million, compared to a deficit of about $2.2 billion.

The surplus in the services balance rose by 36.7 percent to about $7.3 billion, compared to about $5.3 billion, and the surplus in the travel balance increased to about $5.4 billion dollars, compared to about $3.8 billion.

The data also showed that the Suez Canal receipts also rose 5.8 percent to reach $2.9 billion dollars, compared to $2.8 billion, and Capital and financial accounts achieved net inflows of $1.8 billion.

“Foreign direct investment in Egypt recorded a total inflow of about %6.6 billion dollars, compared to 6.57 billion, and total outflow was about $3.8 billion, compared with about $2.8 billion, to reach a net of $2.8 billion,” data revealed.

The usage of long-term and medium-term loans and facilities fell to about $2.2 billion, down from about $4.7 billion.

While total repayments rose to $1.3 billion from $1.2 billion, resulting in a net of $872.3 million compared to $3.5 billion.



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