Study: Egypt witnessed positive economic performance due to increased COVID recovery rate, booming tourism

CAIRO - 21 February 2023: Egypt's fiscal year 2021/2022 witnessed positive economic performance as the recovery rates of COVID-19 surges, and the Egyptian tourism flow sees strong return, according to a recent study. 

 

The study, issued by the Egyptian Center for Thought and Strategic Studies, confirmed that the fiscal year 2021/2022 witnessed many fundamental events, the first half of which (the period from July 2021 to December 2021) was characterized by positive performance, due to high recovery rates of COVID-19, and improved Egyptian tourism movement. 

 

While the second half of the year (January 2022 - June 2022), constituted many geopolitical events globally, which are represented in the Russian-Ukrainian war and the many global economic variables that followed, which cast a shadow on the financial performance data of countries.

 

The study stated that, in view of the Egyptian balance of foreign transactions, or what can be called the Egyptian balance of payments, it is divided into two main parts:

 

1- The first tab, which is called the current balance, and it includes Egypt's transactions with the outside world with regard to exports and imports of goods and services from other countries.

 

2- The second tab is called the capital and financial tab, which includes Egypt's financial transactions with the outside world, which include Egypt's investments abroad, and the investments of foreign countries in Egypt.

 

Whether it is short-term or long-term, grants, deposits, and commitments to the Central Bank of Egypt, the balance of payments is usually viewed as a single unit to identify the size of the financing gap in foreign currencies, or it is viewed in detail for each section separately to identify the performance of the Egyptian state and its export capacity, and how to finance the financing gap through the balance of financial and capital transactions.