Egypt's balance of payments registers deficit of $409.6mln in H1-23/24

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Egypt's overall balance of payments (BOP) deficit reached $409.60 million in the first half (H1) of fiscal year (FY) 2023/2024, registering a surplus of $599.10 million in the same period the previous year.

The current account deficit increased to $9.60 billion during the July-December 2023 period from $1.80 billion in H1-22/23, according to the Central Bank of Egypt (CBE).

The CBE highlighted that the deficit in the account was due to a 20% surge in the trade deficit to $18.70 billion as well as a 20.20% drop in net unrequited current transfers, which reached $9.40 billion.

It was also attributed to a 15.70% decline in the surplus of the services balance, which amounted to $9.20 billion.

Foreign direct investment (FDI) in the Arab Republic registered a net inflow of $5.50 billion in H1-23/24, marking an annual decrease from $5.70 billion.

During the first quarter (Q1) of FY23/24, the country’s budget deficit-to-gross domestic product (GDP) ratio jumped to 3.85% from 2.05% in Q1-22/23.