Key Takeaways
- Egypt's current account deficit widened significantly in the January-March quarter.
- Remittances and tourism revenue increased, but merchandise trade deficits grew larger.
- Suez Canal revenues also saw an increase.
Egypt’s central bank reported that the country’s current account deficit more than doubled to $5.1 billion in the January-March quarter of 2025 from $2.3 billion a year earlier, according to data released on Sunday.
Despite this increase, certain sectors showed growth. Remittances from Egyptians working abroad rose by nearly 40% to $12.8 billion from $9.3 billion in the same quarter last year. Tourism revenue also increased, reaching $4.2 billion compared to $3.8 billion in the previous period.
The central bank attributed the wider deficit mainly to a larger merchandise trade deficit, which was partly offset by higher remittances, tourism revenue, and Suez Canal receipts. Specifically, Suez Canal revenues grew from $800 million to $1 billion over the same quarter last year.
Oil imports also saw an increase, rising to $5.7 billion in the January-March quarter of 2025 from $4.8 billion a year earlier. In contrast, oil exports increased only slightly to $1.6 billion from $1.2 billion during the same period.
Net foreign direct investment (FDI) inflows edged down to $3.7 billion in the January-March quarter of 2025, compared to $3.8 billion a year earlier. This decrease was noted but did not significantly impact the overall current account deficit.
The central bank’s data highlights the ongoing challenges faced by Egypt's economy, particularly with regard to managing trade balances and ensuring steady inflows from various sources such as remittances and tourism.
