Egypt’s Balance of Payments (BOP) registered an overall surplus of $2bn during the first half of the fiscal year (1HFY) 2013/2014, compared to a $551.5m deficit during the same period last year, the Central Bank of Egypt (CBE) said in an official statement.
Earlier in December, CBE stated that between July and September, BOP recorded a $3.7bn surplus, which was a significant improvement compared to the $518.7m deficit recorded during the same period last year.
CBE noted that the current account deficit declined to $755.8m, compared to 4.9bn during 1H FY 2012/2013. Between July and September, the current account stood at $757m.
The bank stated that the improvements witnessed in the current account, compared to last year’s figures, are attributed to “the increase in net unrequited transfers to some $14.5bn, compared to $ 9.8bn”, adding that the net official transfers of cash have registered $6.0bn, compared to the $629.4m of the past year.
The trade deficit recorded $15.4bn, declining by 16.8% from last year’s $18.5bn. The improvement in the trade deficit was a result of the 7.5% increase in merchandise exports, which surged to $12.6bn from $11.7bn, and the decrease in merchandise imports, which dropped from $30.2bn to $28bn.
During 1H FY 2013/2014, the surplus in services markedly dropped from $3.9bn to reach $172m. The decline, according to the statement, is attributed to the significant drop in tourism revenues, which reached $1.9bn compared to $5.6bn during the same period last year.
Between July and September 2013/2014, the surplus in services witnessed a decrease of approximately 91.8%.
“The capital and financial account resulted in a net inflow of around $3bn, compared with some $6.4bn,” CBE said.
The bank added that foreign direct investments (FDI) have increased, recording $2.8m, compared to $2.5bn during the same period last year. CBE pointed out that FDIs have targeted Greenfield investments and the oil sector.