{"id":596725,"date":"2019-07-07T04:43:50","date_gmt":"2019-07-07T04:43:50","guid":{"rendered":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/07\/egypts-current-account-deficit-almost-doubles-in-3q2018-2019\/"},"modified":"2019-07-07T04:43:50","modified_gmt":"2019-07-07T04:43:50","slug":"egypts-current-account-deficit-almost-doubles-in-3q2018-2019","status":"publish","type":"post","link":"https:\/\/enterpriseam.com\/egypt\/2019\/07\/07\/egypts-current-account-deficit-almost-doubles-in-3q2018-2019\/","title":{"rendered":"Egypt\u2019s current account deficit almost doubles in 3Q2018-2019"},"content":{"rendered":"

<\/a> Current account deficit almost doubles in 3Q2018-2019 as non-oil imports rise:<\/b> The current account deficit almost doubled during 3Q2018-2019 to USD 3.75 bn from USD 1.93 bn the previous year due to a rise in non-oil imports, Reuters reported<\/a>, citing its own calculations based on central bank data (pdf)<\/a>. The deficit increased 38% to USD 7.6 bn during 9M2018-2019, up from USD 5.5 bn during the same period a year earlier, primarily caused by an 11% rise in non-oil imports to USD 41.8 bn.<\/p>\n

Balance of payments (BoP) generated a USD 1.4 bn surplus in 3Q<\/b> but recorded a USD 351.2 mn deficit over the first nine months of the year, thanks to the USD 1.77 bn deficit<\/a> during 1H2018-2019.<\/p>\n

Egypt\u2019s non-oil FDI falls to lowest level since 2014: <\/b>Egypt\u2019s non-oil foreign direct investment (FDI) fell to USD 400 mn in 1Q2019, down from USD 720 mn in 1Q2018, according to Reuters calculations<\/a>. This is the lowest level recorded since 2014. High interest rates, low consumer demand, and the slow rate of privatization are all affecting Egypt\u2019s ability to attract more FDI, economists said.<\/p>\n

These findings should not come as a surprise:<\/b> Economists told us in April<\/a> that FDI was always going to take time to recover after the devaluation of the currency in late 2016. EFG Hermes\u2019 Mohamed Abu Basha said that it is \u201cunrealistic\u201d to expect a post-float spike in FDI given the pressure exerted on the economy by the government\u2019s economic reforms. Naeem Brokerage\u2019s Allen Sandeep, meanwhile, predicted that we would need to wait until the reform program is 5-10 years old before seeing a recovery in FDI.<\/p>\n

Tourism revenues surged to USD 9.4 bn in 9M2018-2019<\/b>, up from USD 7.3 bn the year before.<\/p>\n

Other key data points (9M2018-2019):<\/b><\/p>\n