Egypt’s Balance of Payments recorded a $14 million deficit in the first half of 2021-2022.
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 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.