{"id":590812,"date":"2023-07-26T00:00:00","date_gmt":"2023-07-26T00:00:00","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/26\/current-account-deficit-narrows-in-3q-2022-23\/"},"modified":"2023-07-26T00:00:00","modified_gmt":"2023-07-26T00:00:00","slug":"current-account-deficit-narrows-in-3q-2022-23","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2023\/07\/26\/current-account-deficit-narrows-in-3q-2022-23\/","title":{"rendered":"Current account deficit narrows in 3Q 2022-23"},"content":{"rendered":"

Egypt\u2019s current account deficit narrowed by 40% y-o-y to USD 3.5 bn in 3Q <\/strong>2022-2023<\/strong> on the back of falling imports, according to Enterprise calculations of central bank figures (pdf)<\/a> released yesterday. The deficit came in at USD 3.5 bn during the January-March quarter, down from USD 5.8 bn in the same period last year and compared to a USD 1.4 bn surplus in 2Q, the country\u2019s first since 2014. On a nine-month basis, the current deficit narrowed more than 60% to USD 5.3 bn from USD 13.6 bn last year. <\/p>\n

Thank the import squeeze:<\/strong> The value of imports fell 25% y-o-y during 3Q, helping to narrow the trade deficit despite a decline in exports. The country spent USD 17.5 bn on imports during the three-month period, down from USD 23.6 bn in the same period last year, as the ongoing shortage of hard currency constrained importers\u2019 ability to pay for overseas goods. This caused the trade deficit to narrow more than 30% to USD 8.1 bn, offsetting an 18% fall in exports, which came in at USD 9.6 bn<\/strong>. <\/p>\n

It\u2019s likely that falling oil and gas sales helped depress exports:<\/strong> Oil and gas exports fell almost 40% y-o-y to USD 3.2 bn during the quarter. Non-oil exports declined at a slower rate, bringing in USD 6.4 bn compared to USD 6.6 bn in the same period last year. <\/p>\n

Tourism and Suez Canal revenues also rose: <\/strong>Tourism revenues rose 25% y-o-y to USD 3 bn during the quarter from USD 2.4 bn last year, which the central bank attributed to a \u201crise in the numbers of both tourist nights and tourist arrivals.\u201d Meanwhile, Suez Canal revenues saw a 29% increase to USD 2.2 bn from USD 1.7 bn a year prior thanks to an increase in the net tonnage of vessels passing by. <\/p>\n

On a less positive note- FDI and remittances also fell during the quarter<\/strong>, and there were further portfolio outflows: <\/p>\n