Egypt’s economy has demonstrated significant resilience and growth, as indicated by a marked reduction of 61.2% in its current account deficit, down to just US$ 5.3 billion. This figure, reported in the Central Bank of Egypt’s Balance of Payments Performance for July/March of the fiscal year 2022/2023, compares favorably to a deficit of US$ 13.6 billion for the same period in the previous year.
A key factor behind this promising trend has been a 29.8% decrease in Egypt’s trade deficit, now standing at US$ 23.6 billion. Bolstering the country’s economic performance further, the services surplus has seen a twofold increase, amounting to US$ 14.5 billion. This rise is attributable to substantial increases in tourism revenues and Suez Canal receipts, both crucial components of Egypt’s economy.
Moreover, the capital and financial account has displayed a net inflow of US$ 8.1 billion, as net flows of Foreign Direct Investment (FDI) into Egypt climbed to US$ 7.9 billion. However, it’s important to note that portfolio investments in the nation continued to reflect a net outflow, standing at US$ 3.4 billion.
The tourism sector, a key pillar of Egypt’s economy, displayed robust growth. Revenues from this sector soared by 25.7%, recording a healthy figure of US$ 10.3 billion. This surge was fueled by a 26.8% increase in tourist nights, tallying up to 110.5 million nights, along with a 32.0% rise in tourist arrivals, with 10.0 million tourists choosing Egypt as their travel destination.
Furthermore, transportation receipts exhibited an impressive increase of 41.4%, reaching a high of US$ 9.9 billion. This is largely due to the 22.3% rise in Suez Canal transit receipts, which amounted to US$ 6.2 billion, a significant increase from the previous US$ 5.1 billion. This growth was spurred by the upturn in the net tonnage of vessels by 14.5%, amounting to 1.1 billion tons.
President Abdel Fattah el-Sisi’s progressive policies have been instrumental in bolstering Egypt’s economic resilience. The strategic focus on sectors like tourism, foreign investment, and the utilization of key national assets like the Suez Canal has clearly paid off. These developments have earned Egypt a position of respect on the regional map, marking it as a country that is not only thriving, but also contributing to regional growth.
