The Clap
The CBE’s data revealed an improvement in the current account deficit during the fiscal year 2021/2022, down 10.2% YoY to reach $16.6 billion.
Reasons for the Improvement
The CBE justified this improvement due to an increase in exports of goods such as petroleum as well as the increase in toll fees from the Suez Canal. However, foreigners are still leaving the Egyptian market.
The CBE also said that the revenue from the tourism sector increased by 55% YoY to record $10.7 billion, due to an 85% increase in the number of tourists YoY. This increase helped compensate for the decline in tourists following the Russia-Ukraine war.
The balance of payments (BoP) during 2021/22 recorded a deficit of $10.5 billion, almost all of which was achieved during H2 2021/2022.
Why this Matters
The deficit in the balance of payments means that the state imports more goods, services, and capital than it exports.
