Egypt's Current Account Deficit Widens 2.7% YoY in FY2019/20

01/12/2020

Egypt's current account deficit widened 2.7 percent year on year in the 2019/2020 fiscal year to $11.2 billion, compared with $10.9 billion, the Central Bank of Egypt (CBE) announced.

“The Egyptian economy was able to contain the impact of the global financial shock triggered by the crisis [coronavirus],” the CBE stated.

"Despite this modest increase in the deficit, the current account outperformed all expectations. This outperformance in the current account can be attributed to the improvement in non-oil trade balance and the pickup in unrequited current transfers," the CBE added.

Egypt's non-oil trade deficit shrank by $2 billion in the previous fiscal year to $36 billion, down from $38 billion, while unrequited current transfers rose by $2.6 billion to $27.7 billion, compared with $25.1 billion.

Net inflows of foreign direct investment (FDI) declined 9.5 percent year on year in the fiscal year 2019/2020 to $7.5 billion, compared with $8.2 billion, while foreign portfolio investment (FPI) shifted to net outflows of $7.3 billion, compared with net inflows of $4.2 billion.

Tourism revenue dropped by $2.7 billion to $9.9 billion in the previous fiscal year, while Suez Canal revenue climbed to $5.8 billion, up from 5.7 billion.

According to calculations by Reuters, Egypt's current account deficit in the fourth quarter of last fiscal year jumped to $3.8 billion, compared year on year with $1.1 billion.

Tourism revenue lost $305 million in the fourth quarter of the previous fiscal year, down from $3.2 billion in the fourth quarter of the fiscal year 2018/2019, while Suez Canal revenue dropped from $1.46 billion to $1.34 billion, Reuters reported.