Egypt’s current account deficit narrows by 20% during Q1-FY 22-2023

The Egyptian economy’s trade transactions with foreign during the first quarter (July/September period) of the fiscal year 2022/2023 witnessed quit an improvement; as its current account deficit narrowed by 20.2%, according to latest data from the Central Bank of Egypt.

However, it recorded $3.2 billion, compared to about $4 billion during the same period of the previous fiscal year.

The improvement the state’s current account deficit was attributed to the increase in both tourism revenues and commodities exports proceeds (oil and non-oil exports), in addition to the growth in the revenues of the Suez Canal transit fees

The capital and financial transactions account recorded a net inflow of about $4.4 billion, as a result of the doubling of the net inflow of foreign direct investment intp Egypt to $3.3 billion.

On the other hand, investments in the financial portfolios in Egypt witnessed the exitthe non-residents investments from the country as it has recorded $2.2 billion net outflows. As a result of the monetary policies contractionary tendencies which were followed by the US Federal Reserve that consequently lead to hot money exits from emerging markets, resulting in a surplus in the balance of payments reaching $523.5 million