Egypt’s Overall Balance of Payments Deficit Narrows

July 24, 2025

(3 Minutes Read)

Despite the overall deficit, the current account deficit for the July-to-March period improved by 22.6% to USD13.2bn from USD 17.1bn a year earlier. The improvement was heavily concentrated in the third quarter (Jan-March 2025), when the deficit narrowed by 69.3%.

Egypt’s balance of payments recorded an overall deficit of USD 1.9bn in the first nine months of the 2024-25 fiscal year, swinging from a USD 4.1bn surplus a year earlier, the central bank said on Monday.

The shift was mainly driven by a drop in capital and financial account net inflows, which were recorded at USD 7.7bn compared with unprecedented inflows of USD 20bn in the corresponding period last year, which included the USD 15bn “Ras El Hekma” investment deal.

Despite the overall deficit, the current account deficit for the July-to-March period improved by 22.6% to USD 13.2bn from USD 17.1bn a year earlier. The improvement was heavily concentrated in the third quarter (Jan-March 2025), when the deficit narrowed by 69.3%.

The improvement in the current account was supported by a surge in remittances from Egyptians working abroad, which rose 82.7% to reach USD 26.4 bn, compared to USD 14.5 bn in the same period last year. Tourism revenues also rose by 15.4% to USD 12.5 bn, while the investment income deficit retreated by 13.4% to USD 12.2 bn. However, these gains were partly offset by a sharp fall in Suez Canal receipts and widening trade deficits.