30 Jun 2021

The CBE (Central Bank of Egypt) has released its report on Egypt’s BOP (Balance of Payments) for 9M20/21 (July 2020 – March 2021). The BOP turned to a surplus of USD1.8bn versus a deficit of USD5.1bn in 9M19/20, which was largely a result of the onset of the Covid pandemic and its devastating effects on economic activity. This proves the Egyptian economy’s resilience, and its ability to recover quickly from the global economic crisis caused by the pandemic.

The surplus was largely due to a significant increase in the capital and financial account, which achieved net inflows of USD17.1bn versus USD4.1bn in 9M19/20. This was mainly driven by large foreign portfolio investments, which reflect foreign investors’ confidence in the Egyptian economy. On the other hand, the current account showed a deficit of USD13.3bn versus USD7.3bn in 9M19/20. This was mostly driven by a sharp decline in tourism revenues, as the pandemic ground international tourism to an abrupt halt. Tourism revenues in 9M20/21 were less than one-third of those in 9M19/20. (Source: CBE (English) (Arabic), al-Maal, Amwal al-Ghad, al-Shurouk)