Egypt's current account deficit narrowed to $2.1bn (R36.88bn) in January to March from $7.5bn (R131.73bn) in the same period a year earlier, the central bank said on Tuesday.
The central bank attributed the slimmer deficit to the increase in remittances from Egyptians working abroad, as well as a rise in the services surplus due to higher tourism revenue.
Oil exports declined to $1.2bn, from $1.4bn in the year earlier, while imports of oil products rose to $4.8bn from $3.4bn.
Egypt has sought to import more fuel oil and liquefied natural gas this year to meet its power demands after disruptions to gas supply led to blackouts over the last two years.
Concerns over supplies increased after the pipeline supply of natural gas from Israel to Egypt decreased during Israel’s air war with Iran last month.
Revenues from the Suez Canal, declined to $800m in the third quarter of the country’s financial year, from $1bn the same time a year ago, as Yemeni Houthis' attacks on ships in the Red Sea continued to cause disruption.
The Iran-aligned group says it attacks ships linked to Israel in support of Palestinians in Gaza.
Meanwhile, Egypt’s tourism revenues reached $3.8bn, compared to $3.1bn in the same period in 2023/24.
Remittances from Egyptians working abroad increased to $9.3bn, from $5.1bn. The increase in remittances has helped to reduce the wider trade deficit.
Foreign direct investment hit $3.8bn, compared to $18.2bn in the same quarter a year before.
Egypt has suffered an economic crisis exacerbated by a foreign currency shortage, which forced it to undergo economic reforms under an $8bn IMF programme that included allowing its pound to depreciate sharply last year.
Reuters
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