Egypt’s balance of payments (BOP) deficit jumped 240% in the first half of the 2015/2016 fiscal year to reach $3.4b, up from $1b last year, due to falling tourism receipts, Suez Canal revenues, and transfers, the Central Bank of Egypt (CBE) informed, according to Ahram Online.
The current account deficit more than doubled to reach $8.9b, an increase from $4.3b in the previous year.
The trade deficit shrunk slightly in spite of declining export proceeds, registering $19.5b versus $20.4b, as the decline in world oil and staple commodity prices had a significant impact on the imports bill, said the CBE.
Export proceeds declined by over 25% to record $9.1b, due to the fall in world crude oil prices that slashed oil export revenues by $2.2b, the bank said in an official release. Non-oil exports fell by 14% to $6b, according to the CBE.
But the commodity imports bill dropped by close to 13% to $28.6b, compared to $32.7b, as the value of both oil and non-oil imports dropped.
The CBE pointed out the rise in net inflows of foreign direct investment in Egypt from $2.6b to $3.1b; however, the portfolio investment in Egypt achieved a net outflow of $1.6b compared to $2.1b in the last fiscal year, wrote Daily News Egypt.