Egypt Balance-of-Payments Deficit Down $9 bn

Egypt's balance of payments deficit narrowed dramatically to $2.1 billion in the first nine months of the current 2012/13 fiscal year, down from $11.2 billion in the same period one year earlier, the Central Bank of Egypt (CBE) announced.

According to the CBE, the period from July 2012 to March 2013 witnessed a 2.7-percent drop in the national trade deficit, which narrowed to $23.8 billion from a previous $24.5 billion as the value of exports increased from $19.1 billion to $19.8 billion. Total imports, meanwhile, remained at $43 billion.

The nine months to March 2013 were also marked by a 14-percent rise in tourism revenue as the number of tourist nights in Egypt increased by 14.1 percent. Suez Canal revenues, however, decreased by 3.9 percent during the same period to register $3.8 billion.

There was a marked decline in net outflows of portfolio investments in Egypt, meanwhile, as foreign investors turned away from Egyptian treasury bills, for which net sales declined from $3.9 billion to $14.7 million for the period.

Foreign direct investment, however, picked up during the period, with net FDI inflows rising by $0.2 billion as net investment outflows in the oil sector in particular contracted and net inflows of greenfield investments declined.