Egypt’s balance of payments hits $311.4 mln surplus, tourism revenues ups to $2.8 billion in 1Q of FY2021/22: CBE
Egypt’s balance of payments attained an overall surplus of $311.4 million in the first quarter (1Q) FY2021/2022 (July-September 2021), the Central Bank of Egypt (CBE) announced on Wednesday.
This number compares to an overall deficit of $69.2 million in the corresponding quarter of FY2020/21.
CBE explained that such a surplus was achieved despite a rise in the current account deficit to $4 billion in the 1Q of FY2021/22, up from $2.8 billion in the same quarter of FY2020/21.
This increase came as a result of the growth of the non-oil trade balance deficit by 26.1 percent in the 1Q of FY2021/22 to $11 billion due to the increase in medical supply imports amid the pandemic and the rise in production supply imports as well, CBE expounded.
CBE said that the increase in the tourism revenues has contributed in curbing the deficit, as the sector’s earnings edged up to $2.8 billion in the 1Q of FY2021/22, up from $801 million in 1Q of FY2020/21.
Additionally, the oil trade deficit reached $101.1 million in 1Q of FY2021/22, compared to a surplus of $143.7 million in the same quarter of FY2020/21, mainly because of the global oil prices hike, according to the CBE.
For foreign direct investment (FDI), CBE’s data showed that Egypt’s FDI inflows jumped by 3.7 percent in the 1Q of FY2021/22 to reach $1.6 billion, while investments into the securities portfolio reached $3.6 billion, which both bringing about an increase in total investments worth $6 billion, up from $3.9 billion in the same quarter of FY2020/21.
FDI inflows in the oil sector grew in the 1Q of FY2021/22 to post $489.2 million, up from $75.3 million in the corresponding quarter of FY2020/21, CBE’s data demonstrated.
Meanwhile, the investment balance deficit rose in the 1Q of FY2021/22 by 26.6 percent to post $3.9 billion, up from $3.1 billion in the corresponding quarter of FY2020/21, according to CBE.