Current account deficit widens Egypt amid economic shifts
(MENAFN) In the first nine months of fiscal year 2023-2024, Egypt's current account deficit expanded significantly to USD17.1 billion, marking a notable increase from USD5.3 billion recorded in the same period the previous year. Official data from the Central bank of Egypt highlighted that this widening deficit was largely influenced by a sharp decline in oil exports, which plummeted by USD7.2 billion to USD4.6 billion during the July to March period.
The central bank's statement further revealed that imports of petroleum products surged by USD1.5 billion and natural gas imports rose by USD268.2 million. This increase in energy imports coincided with periods of frequent power cuts in Egypt due to heightened consumption exacerbated by sweltering weather conditions.
Meanwhile, revenues from the Suez Canal dipped to USD5.8 billion in the same period, down from USD6.2 billion a year earlier. The most significant decline was observed from January to March, with transit fee revenues plummeting by 57.2 percent to approximately USD959.3 million, compared to USD2.2 billion in the corresponding period of the previous year. This downturn was attributed to disruptions in shipping traffic in the Red Sea, forcing many commercial vessels to reroute.
Amidst these economic shifts, Egypt experienced a notable increase in foreign direct investment (FDI), which tripled to around USD23.7 billion from USD7.9 billion year-on-year. Conversely, remittances from Egyptians working abroad declined to USD14.5 billion from USD17.5 billion, while tourism revenues saw a slight uptick, rising to USD10.9 billion from USD10.3 billion over the same comparative period.
The fiscal year in Egypt concludes on June 30, with policymakers and analysts closely monitoring these economic indicators amidst efforts to stabilize the country's external balances and foster sustainable economic growth.
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