Egypt’s current account deficit narrows 25.9% in FY 2024/2025 – CBE
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Egypt’s current account deficit narrowed by 25.9 per cent in the 2024/2025 fiscal year, supported by a surge in remittances, tourism revenues, and non-oil exports, the Central Bank of Egypt (CBE) said in its balance of payments report on Tuesday.
The deficit fell to $15.4 billion, down from $20.8 billion a year earlier, reflecting what the CBE described as “a marked improvement in external transactions,” particularly in the second half of the fiscal year (January–June 2025).
During that period, the current account gap dropped by 59.9 percent compared with the same half of the previous year, the report said. The sharp improvement was fueled by a 55.3 percent jump in remittances from Egyptians working abroad and a 49.6 percent increase in the services surplus, driven by a 21 percent rise in tourism revenues.
The CBE also highlighted a 38.9 percent surge in non-oil merchandise exports, which helped narrow the non-oil trade deficit, alongside a modest decline in the investment income deficit.
The figures suggest that Egypt’s external position is stabilising after years of pressure from global inflation, a strong US dollar, and domestic foreign currency shortages. The improvement in remittances and tourism receipts, two of Egypt’s main sources of hard currency, is seen as key to easing external financing strains and supporting the central bank’s efforts to rebuild reserves.
Petroleum trade deficit
The petroleum trade deficit widened to $13.9 billion from $7.6 billion, mainly due to a $6.1 billion increase in petroleum imports, which reached $19.5 billion compared to $13.4 billion. Petroleum exports declined slightly by $128.2 million to $5.6 billion as lower exports of crude oil and natural gas outweighed higher refined product exports.
Non-petroleum trade deficit
The non-petroleum trade deficit rose to $37.1 billion from $31.9 billion, as imports climbed $13.0 billion to $71.7 billion compared to $58.8 billion, mainly from soybeans, wheat, car parts, corn, and raw tobacco. Non-oil exports grew $7.8 billion to $34.6 billion, compared to $26.8 billion, supported by higher exports of gold, ready-made garments, dried and fresh fruits, ceramics, and aluminium products.
Suez Canal revenues
Suez Canal revenues dropped 45.5 per cent to $3.6 billion from $6.6 billion, as net tonnage fell 55.1 per cent to 482.8 million tonnes and transiting ships decreased 38.5 per cent to 12,400. In the second half of FY 2024/2025 (January–June 2025), Suez Canal receipts fell slightly by 1.4 per cent to $1.8 billion from $1.83 billion a year earlier.
Capital and financial account
The capital and financial account recorded a net inflow of $10.2 billion, compared to $29.9 billion in the previous year. Net foreign direct investment reached $12.2 billion, down from $46.1 billion a year earlier, which had included exceptional inflows of $35 billion related to the Ras El Hekma deal.
Non-oil FDI
Non-oil FDI recorded a net inflow of $11.6 billion, including $5.5 billion in equity inflows ($354.5 million for establishing new companies), $1.9 billion from non-residents purchasing real estate, $399.8 million from the sale of companies and productive assets to non-residents, and $4.2 billion from reinvested earnings. Meanwhile, the oil sector recorded a net inflow of $598.3 million compared to a net outflow of $351.6 million in the previous year, as inflows to the sector rose to $6.2 billion while outward transfers by foreign partners declined to $5.6 billion.
Portfolio investment inflows
Portfolio investment inflows reached $1.6 billion, compared to $14.5 billion. Medium- and long-term loans and credit facilities recorded a net repayment of $3.5 billion, compared to $2.4 billion, with total repayments rising to $12.4 billion and total disbursements reaching $8.9 billion.
Central Bank transactions recorded a net inflow of $3.6 billion compared to a net outflow of $7.8 billion, while the banking sector registered a net inflow of $3.4 billion compared to a net outflow of $2.0 billion.
Attribution: Amwal Al Ghad English
Subediting: Y.Yasser