Arab Finance: Egypt’s overall balance of payments (BoP) deficit recorded $1.8 billion in the first nine months of fiscal year (FY) 2025/2026, compared to $1.9 billion during the same period in the previous FY, according to a report issued by the Central Bank of Egypt (CBE).

The capital and financial account witnessed an increase in the net inflows to hit $9.9 billion in the July 2025-March 2026 period, as foreign direct investment (FDI) in Egypt witnessed a net inflow of $13 billion.

Meanwhile, portfolio investments in the country registered a net outflow of $4.4 billion.

On the other hand, the current account posted a deficit of $14.6 billion, reflecting a 24.6% hike in the merchandise trade deficit to reach $47.8 billion.

Net unrequited current transfers climbed by 31.1% to $34.7 billion, driven by the surge in remittances from Egyptians working abroad.

The non-oil trade deficit increased by 23.8% year on year (YoY) to $34.7 billion from $28 billion, mainly supported by a pickup in non-oil imports that surpassed non-oil exports.

Likewise, the services surplus rose by 19.2% to $12.9 billion due to the increase in both tourism revenues and Suez Canal transit receipts, as the latter began to regain its former levels.

Tourism revenues jumped by 14.9% YoY to $14.4 billion from $12.5 billion, while the Suez Canal transit receipts increased by 22.1% to $3.2 billion from $2.6 billion.

Remittances of Egyptians working abroad increased by 32% YoY in the nine-month period to $34.9 billion, compared to $26.4 billion.

In the first half (H1) of FY2025/2026, the BoP recorded an overall deficit of $502.6 million, compared to $409.6 million in H1 FY2023/24.