Egypt's Balance of Payment Records Surplus of USD 281.9 Million

Egypt's balance of payments has a surplus for the first nine months of fiscal year 2022/2023 reaching USD 281.9 million, according to a report by the Central Bank of Egypt (CBE). Meanwhile, the current account deficit saw a significant reduction of 61.2%, falling to USD 5.3 billion from USD 13.6 billion in the same period the previous fiscal year. The decline in the trade deficit, which dropped by 29.8% to reach USD 23.6 billion, contributed to this improvement.

The capital and financial account posted a net inflow of USD 8.1 billion during the nine months leading up to March 2023. Furthermore, foreign direct investments (FDI) in Egypt increased to USD 7.9 billion during the same period. However, portfolio investments in Egypt experienced a net outflow of USD 3.4 billion.

The report indicates that Egypt's economic recovery is gaining momentum, with the reduction in the current account deficit being a significant indicator of this trend. The improvement in the trade deficit and the increase in FDI are also positive signs for the country's economy. However, the net outflow of portfolio investments highlights the need for continued reforms to enhance the country's investment climate.