Egypt’s current account deficit widens despite rising remittances
Egypt’s current account deficit reached 22.5 billion dollars in fiscal 2025/26, up from 15.4 billion dollars a year earlier, in figures attributed to the country’s central bank. Higher import payments widened the gap. Remittances reached 47.3 billion dollars and receipts from tourism and shipping also increased during the fiscal year ending in June.
Economics & Markets··Midday
Higher imports widen the current account gap
Egypt’s current account deficit increased from about 15.4 billion dollars to 22.5 billion dollars in fiscal 2025/26. The figures, published on October 12, were attributed to the Central Bank of Egypt by Daily News Egypt and Al Manassa. The fiscal year ended in June. Higher import payments enlarged the deficit despite stronger receipts from money transfers, tourism and canal traffic.[1], [2]
Total imports exceeded 108 billion dollars, nearly 19 per cent more than in the preceding year. Non-petroleum imports reached 83.9 billion dollars and petroleum imports about 24.9 billion dollars. Al Manassa attributed the increase to greater imported quantities, citing the central bank. Domestic natural gas consumption also exceeded production, with imports meeting the remaining requirement.[2]
Remittances and travel receipts increase
Egyptians working abroad sent home approximately 47.3 billion dollars, up 29.6 per cent from the preceding fiscal year. Al Manassa put the previous total at about 36.5 billion dollars and the increase at nearly 10.8 billion dollars. The growth partly offset the pressure from larger import payments. It did not prevent the current account deficit from widening over the same year.[1], [2]
Tourism revenue reached 18.4 billion dollars, up 10.3 per cent from a year earlier. Suez Canal transit receipts grew 21.6 per cent to 4.4 billion dollars. Daily News Egypt also reported a 22.4 per cent rise in net tonnage and a 9.8 per cent increase in the number of transiting ships.[1]
Financial inflows accompany a wider trade deficit
Daily News Egypt put the merchandise trade deficit at 64.8 billion dollars, up 27.1 per cent, and the investment income deficit at 21.2 billion dollars, up 33.8 per cent. The non-oil trade deficit reached 46.6 billion dollars; non-oil imports increased by 12.1 billion dollars while exports increased by 2.7 billion dollars. The oil trade deficit rose to 18.3 billion dollars.[1]
In the same newspaper’s account, net capital and financial inflows rose from 10.2 billion dollars to 23.2 billion dollars. Net foreign direct investment reached 18 billion dollars and portfolio inflows 4.2 billion dollars. The overall balance of payments recorded a 2.8 billion dollar surplus, compared with a 2.1 billion dollar deficit previously. This overall balance includes financial flows alongside the current account.[1]
