The Central Bank of Egypt reported that the sharp improvement in the current account was accompanied by the decline in the trade balance deficit to a rate of 28.4%, limited to about 15.5 billion dollars, or about 2, $8 billion.
Foreign direct investment recorded a net inflow into the economy of $5.7 billion, while investment in the securities portfolio in Egypt recorded a net outflow of around $3 billion.
Thus, the balance of payments recorded during the first half of the current financial year a total surplus amounting to 599.1 million dollars.
Factors contributing to the reduction in the deficit
The non-oil trade balance deficit improved during the first half of the current fiscal year, to be limited to 17.3 billion dollars, against 23.8 billion dollars on an annual basis, due to lower payments for non-oil payments. commodity imports of about $6.3 billion, thanks to a drop in import payments of 17.3%, and export earnings increased slightly by $124.8 million.
The oil trade balance reached a surplus of $1.8 billion, supported by an increase in natural gas exports of about $2 billion.
- The tourism sector shared in the growth, with tourism receipts jumping 25.7% to a record $7.2 billion, from $4.7 billion on an annual basis, due to the increase in the number of tourist overnight stays by 27.2% to 78.4 million overnight stays, and the increase in the number of tourist arrivals in Egypt by 27.5% to 6.8 million tourists.
Suez Canal revenues also recorded positive growth in the first half of the current fiscal year, up 17.8% to $4 billion from $3.4 billion on an annual basis, supported by the increase in net tonnage passing through the canal by 13.3%. to 753.3 million tonnes. This growth Support Central Bank revenue from transportation to grow 45.1 percent to $6.8 billion.
Factors limiting the decrease in the deficit
Remittances from Egyptians working abroad fell in the first half of the current fiscal year, by 23%, to $12 billion, compared to $15.6 billion for the same period last year. Previous exercice.
- The deficit in the investment income balance increased by 25.5%, to about $8.9 billion, due to the increase in investment income payments of about $2 billion to $9.6 billion, reflecting the increase in both interest paid on foreign debt and profits made on foreign direct investment in Egypt.
Data from the Central Bank of Egypt also showed that the capital and financial account recorded net inflows of only $2.8 billion, compared to $11.4 billion for the same period. the previous year, due to the increase in net investment outflows from the securities portfolio in Egypt to reach $3 billion, coinciding with the continuation of the restrictive monetary policies led by the US Federal Reserve.
Foreign direct investment in the non-oil sectors increased, recording net inflows of $6.6 billion, compared to around $4.4 billion in the two comparison periods.
The Central Bank attributed this to the increase in net investments received to create new businesses or increase the capital of existing entities, to register 2.2 billion against around $1 billion.
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