Egypt Current Account Deficit Hits US$22.5 Billion

Egypt's current account deficit widened to US$22.5 billion in the fiscal year ending June 2026, according to the Central Bank of Egypt. The deficit rose by 46% from US$15.4 billion the previous year, primarily due to increased imports and larger payments to foreign investors. Despite this, the country still maintained a surplus in the balance of payments amounting to US$2.8 billion, reversing the previous year's deficit of US$2.1 billion.

The merchandise trade deficit grew by 27.1% to US$64.8 billion, as reported by the Federation of Egyptian Banks and Masrawy. Non-oil imports increased by 16.9% to US$83.9 billion, while non-oil exports only grew by 7.8% to US$37.3 billion. Energy imports contributed to the strain, with the oil trade deficit rising by 31.5% to US$18.3 billion.

The investment income deficit widened by 33.8% to US$21.2 billion, with remittances from Egyptians working abroad accounting for the largest single source of foreign currency at US$47.3 billion. Tourism revenue rose by 10.3% to US$18.4 billion, slightly boosting the services surplus. The Suez Canal receipts saw a 21.6% increase to US$4.4 billion.

Net inflows into the capital and financial account reached US$23.2 billion, more than offsetting the current account deficit. Overall, foreign direct investment and portfolio inflows helped generate an overall surplus, but the country remains reliant on foreign capital to cover its external gap.