Egypt current account deficit narrows as tourism rises

CAIRO - 28 June 2018: Egypt’s current account deficit for the third quarter of the 2017-18 fiscal year narrowed to $1.93 billion from $3.1 billion a year earlier as tourism revenues improved, data from the central bank and Reuters calculations showed on Thursday.

Egypt has been trying to tighten its finances and draw back investors, using economic reforms tied to three-year $12 billion IMF loan programme it began in late 2016.

The country’s fiscal year runs from July through June.

The data showed that tourism revenues rose to $2.27 billion in the quarter, which runs from January through March, from $1.256 billion in the same quarter a year ago. Expatriate remittances increased to $6.46 billion from $5.78 billion.

Net foreign direct investment inflows declined to $2.26 billion in the quarter from $2.28 billion.

The trade deficit improved, dropping to $9.26 billion from $9.35 billion.

Suez Canal revenues edged up to $1.39 billion in the quarter from $1.20 billion a year ago.

The overall balance of payments improved, hitting a surplus of $5.38 billion for the quarter versus $3.97 billion last year.