Egypt’s Current Account Deficit Falls to $13 Billion in Nine Months
Egypt’s current account deficit dropped to $13.2 billion in the nine months ending in March, down by 22.6% compared to the same period last year, according to the Central Bank of Egypt (CBE).
The biggest improvement came in the first three months of 2025 (January–March), which is the third quarter of Egypt’s financial year.
The CBE said this improvement was helped by:
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An 86.6% jump in money sent home by Egyptians working abroad.
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A 23% increase in income from tourism.
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A 56.9% rise in non-oil exports, which helped reduce the trade gap in non-oil goods.
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A 5.2% improvement in investment income.
However, despite this progress, Egypt’s overall balance of payments still showed a deficit of $1.9 billion, compared to a surplus of $4.1 billion in the same period last year. This was mostly due to a big drop in money coming into the country through capital and financial channels—from $20 billion to $7.7 billion. This includes the impact of the Ras El Hekma investment deal.
The oil trade deficit also increased, reaching $10.3 billion (up from $5.1 billion) because of higher oil imports.
Income from the Suez Canal fell by 54.1% to $2.6 billion. This was due to shipping problems in the Red Sea, which forced many ships to take longer routes.
Inflation and Interest Rates
The Central Bank kept interest rates unchanged after cutting them twice before. It wants to wait and see how recent policy changes affect the economy.
Inflation slowed down in the second quarter. Annual inflation fell to 15.3% (from 16.5% in the first quarter). In June, inflation dropped further to 14.9%, and core inflation (which excludes food and energy) fell to 11.4%. The drop was mainly due to falling food prices and stable non-food prices.
Published: 23rd July 2025
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