CAIRO (Reuters) -Egypt’s current account deficit narrowed to $2.2 billion in the April-June 2025 quarter from $3.7 billion in the same period a year earlier, the central bank said on Tuesday.
The bank attributed the slimmer deficit in fiscal 2024/25 to higher remittances and tourism revenue.
Revenue from the Suez Canal, a key source of foreign currency, increased to $1 billion this quarter, from $800 million. The increase is marginal since attacks by Yemen’s Iran-aligned Houthi group on ships in the Red Sea continued to disrupt traffic through the vital waterway. The Houthis say the attacks are in support of Palestinians in Gaza.
Oil export value slightly rose to $1.4 billion, from $1.1 billion in the previous year, while the value of imported oil products increased to $500 million from $400 million.
Egypt has increased imports of fuel oil and liquefied natural gas this year to meet power demand after gas supply disruptions caused blackouts over the past two years.
Domestic gas output has been declining since 2022, derailing Egypt’s ambitions to become a regional supply hub. The country has increasingly relied on Israeli imports and signed in August a deal worth up to $35 billion with Israel’s Leviathan field to boost supplies.
Meanwhile, foreign direct investment plummeted to $2.4 billion from $22.4 billion a year earlier. The bank noted last year foreign direct investment exceptionally increased owing to the massive deal to develop Ras El Hekma on Egypt’s north coast.
Egypt’s tourism revenue reached $4.2 billion in the quarter, up from $3.5 billion a year earlier, the central bank said.
Egyptian tourism, featuring ancient pyramids and Red Sea resorts, has strongly recovered from the impact of the pandemic, with visitors reaching a record 15.7 million in 2024, according to the Tourism Ministry.
Remittances from Egyptians abroad, another main source of foreign currency, rose to $10.1 billion from $7.4 billion.
(Reporting by Jaidaa Taha, Yomna Ehab and Menna Alaa-El Din, writing by Enas Alashry and Hatem Maher; Editing by Chris Reese, Richard Chang, Rod Nickel)
