17 Oct 2021
The CBE (Central Bank of Egypt) released BOP (balance of payments) data for FY20/21. The BOP skyrocketed to a surplus of USD1.9bn, up from a deficit of USD8.6bn in FY19/20. This remarkable rise came due to the capital & financial account witnessing a net inflow of USD23bn versus only USD5.4bn in FY19/20. The upsurge in foreign portfolio investments reflects the confidence of foreign investors in the Egyptian economy, at a time when there is continuing uncertainty about the global economic recovery from the Covid pandemic.
On the other hand, the current account deficit increased to USD18bn, up from USD11bn in FY19/20. This can be primarily attributed to the sudden drop in tourism revenues due to the pandemic, as well as a slow recovery in the sector both domestically and globally, as leisure travel gradually and cautiously picks up. Another contributor to the increase in the current account deficit is a rise in the non-oil trade balance deficit. This was mainly due to increased imports of intermediate goods, raw materials, and investment goods, all of which contribute to higher economic growth.
(Source: CBE (English) (Arabic), State Information Service (English), al-Maal, Amwal al-Ghad, Mubasher, al-Borsa News, Hapi Journal, al-Aalam al-Youm, al-Ahram, Akhbar al-Youm, al-Shurouk, al-Dustour, Sada el-Balad, Middle East News Agency)