The Clap
Egypt’s Balance of Payments recorded a $14 million deficit in the first half of 2021-2022.
Claps Class
Balance of Payments (BoP) are records of all monetary transactions, which include import, export and transfer of capital and financial profits between the nation and other countries. The state records a deficit if the state imports goods and services and brings in more capital than it exports.
The deets
The current account deficit widened by 2.6% to reach $7.8 billion during the first half of FY-2022
The increase in the deficit was recorded due to factors most notably the widening of the non-oil trade balance deficit by 24.2% to reach $23.8 billion.
On the other hand, the current account deficit was mitigated by recording a surplus in the oil trade balance that amounted to $2.1 billion, due to the rise in Egypt’s exports of natural gas and the rise in its international prices.
Tourism revenues more than doubled to $5.8 billion. Revenues from the Suez Canal increased by 16.6% to reach $3.4 billion.
The investment portfolio in Egypt, which includes investing in stocks, bonds and treasury bills, recorded outflows of $2.5 billion.
