CBE: Current Account Deficit decreases by 77.2%, records $1.8 bn during H1-2022/2023

The Central Bank of Egypt revealed in a statement, today, regarding the performance of Balance Of Payments during the first half of the fiscal year 2022/2023, that Egyptian economy transactions with the outside world resulted in an improvement in current account deficit at a rate of 77.2%, to record $1.8 bn, compared to $7.8 billion during the same period of the previous fiscal year.

CBE stated in its report that this came as a main result of the decline in trade deficit at a rate of 28.4%, reaching $6.2 bn, to be limited to $15.5 bn.

Capital and financial transactions account also achieved a net inflow of $2.8 bn, as the net inflow of foreign direct investment in Egypt increased to $5.7 bn.

On the other hand, securities portfolio's investment in Egypt witnessed a net outflow of about $3 bn. Previous developments during the period July/December 2022 resulted in a total surplus in the balance of payments reached $599.1 mn.

Non-oil trade deficit improved by $6.5 bn, to be limited to $17.3 bn (compared to $23.8 bn), mainly due to the decrease in payments non-oil commodities by about $6.3 bn.

Due to several reasons, including the decrease in payments for non-oil commodity imports at a rate of 17.3%, to be limited to about $30.2 bn (compared to  $36.5 bn). The decrease was concentrated in imports of cars, telephones, and spare parts.

In addition, the proceeds of non-oil commodity exports increased by $124.8 mn, to record about $12.9 bn (compared to about $12.8 bn). The increase was concentrated in gold, phosphate or mineral fertilizers, and transmitters and receivers for radio or television.

And the increase in petroleum imports by $980.3 mn, due to the increase in imports of each of petroleum products by $554.1 mn and natural gas by $382.4 mn.

Tourism revenues witnessed a recovery rate of 25.7%, to record about $7.3 bn, compared to about $5.8 bn, due to the increase in the number of a night spent by 27.2%, to record 78.4 million nights, and the number of Arrivals by 27.5%, to record 6.8 million tourists.

In addition to transportation revenue at a rate of 45.1% to reach $6.8 bn (compared to  $4.7 bn), as a main result of the increase in traffic and toll revenues in Suez Canal transit fees at a rate of 17.8%, to record about $4 bn (compared to $3.4 bn), as a result of the high net tonnage, at a rate of 13.3%, to reach 753.3 million tons.

The limitation of the improvement in the current account is due to the decline in tranfers of Egyptians abroad by 23%, to be limited to about $12 bn (compared to $15.6 bn).

Deficit of Investment income balance increased by 25.5%, to record about $8.9 bn (compared to $7.1 bn).

Due to several reasons, including the increase in investment income payments by about $2 bn, to record about $9.6 bn (compared to $7.6 bn), and as a reflection of the increase in both Interest payments on external deb and profits of foreign direct investment in Egypt.

In addition to an increase in investment income proceeds by $203.4 mn to record $697.9 mn (compared to $494.5 mn) as a main result of the increase in interest on residents' deposits with banks abroad.