Egypt’s current account deficit expanded to $11.1 billion during the July to December period of 2024, the first half of the country’s fiscal year, up from $9.6 billion a year earlier, according to data released by the central bank on Monday.
The central bank attributed the widening deficit to a 47.4% surge in the trade deficit, which reached $27.5 billion.
Key factors contributing to the increase included a significant drop in revenue from the Suez Canal, Egypt’s vital foreign currency source, which fell 62.3% to $1.8 billion from $4.8 billion in the same period last year. This decline was largely driven by attacks on shipping vessels by Iran-aligned Yemeni Houthi rebels in the Red Sea, who have stated that their actions are in support of Palestinians in Gaza.
Additionally, Egypt’s oil exports fell to a record low of $3.0 billion, down from $3.2 billion the previous year, due to decreased exports of natural gas and crude oil. At the same time, the country became a net importer of natural gas, importing $2.1 billion worth of gas after domestic production declined sharply, abandoning earlier plans to become a key European supplier.
In more positive news, Egypt’s tourism revenue rose to $8.7 billion, up from $7.8 billion last year, with 2024 marking a record 15.7 million tourists visiting the country as its tourism sector continues to recover from the impact of the COVID-19 pandemic.
Remittances from Egyptians working abroad, a significant source of foreign currency, surged by 80.7% to $17.1 billion, while foreign direct investment increased to $6.0 billion from $5.5 billion in the previous year.
Egypt’s fiscal year concludes on June 30.