Egypt’s Current Account Deficit Narrows Sharply Amid Surge in Remittances and Tourism Revenue

Egypt’s current account deficit narrowed significantly to $13.2 billion during the first nine months of the 2024/2025 fiscal year,down from $17.1 billion a year earlier,the Central Bank of Egypt announced on Tuesday,July 22.

This improvement was driven primarily by an 86.6% surge in remittances from Egyptians abroad,reaching $26.4 billion,and a robust 23% rise in tourism revenue,which climbed to $12.5 billion. However,the gains were partially offset by a sharp rise in oil imports and a downturn in oil exports.

Oil imports jumped to $14.5 billion from $9.7 billion as Egypt ramped up purchases of fuel oil and liquefied natural gas to mitigate power shortages. Meanwhile,oil exports declined to $4.2 billion. The ongoing conflict in the region also weighed heavily on Suez Canal revenues,which plunged to $2.6 billion from $5.8 billion due to continued Houthi attacks on Red Sea shipping lanes. Foreign direct investment,a key economic indicator,also fell significantly to $9.8 billion,from $23.7 billion in the same period last year.