06-05-2025
Egypt current account deficit narrows as remittances soar
CAIRO: Egypt's current account deficit narrowed to $5.17 billion in the last quarter of 2024 from $6.82 billion a year earlier as surging remittances from Egyptians working abroad counterbalanced a sharply wider trade deficit, central bank figures showed on Monday.
Remittances from abroad jumped to $8.74 billion in the three-month period from $4.93 billion a year earlier, when an overvalued currency and a thriving black market had pushed the trade out of the official currency market.
The black market all but disappeared after the government sharply devalued the Egyptian pound and hiked interest rates, part of an $8 billion financial support package signed with the International Monetary Fund in March 2024.
Egypt's trade deficit widened to $13.44 billion in the fourth quarter from $10.71 billion a year earlier, with imports jumping to $23.06 billion from $18.83 billion. A scarcity of foreign exchange had sharply curtailed imports before the IMF agreement was reached.
Tourism revenue rose to $3.91 billion from $3.32 billion a year earlier, showing resilency despite Israel's campaign in Gaza.
Oil exports rose to $1.80 billion from $1.61 billion a year earlier, while oil imports climbed to $4.25 billion from $3.38 billion.
Suez Canal revenue plummeted to $880.9 million in the fourth quarter from $2.40 billion a year earlier, the victim of attacks on shipping by Yemen's Houthis, who say they are trying to shut off cargo bound for Israel in support of Palestinians in Gaza, but are also chasing ships away from the canal.
Foreign direct investment rose to $2.72 billion from $2.21 billion a year earlier.
Foreign investors withdrew a net $384.5 million from Egyptian treasuries, less than the $523.4 million they withdrew a year earlier. (Reporting by Ahmed Alimam and Nayera Abdallah; Writing by Jaidaa Taha, Hatem Maher, Nayera Abdallah and Patrick Werr; Editing by Tomasz Janowski, Jan Harvey and Leslie Adler)
