Egypt BoP records $882 mln surplus in FY2022/2023 on record tourism & Suez Canal revenues

Ahram Online , Wednesday 4 Oct 2023

Egypt turned a $10.5 billion deficit in its Balance of Payment (BoP) in FY2021/2022 to a surplus of $882 million in FY2022/2023, catapulted by record revenues from tourism and the Suez Canal.

Tourists visiting The Great Pyramid of Khufu in Giza.
Tourists visiting The Great Pyramid of Khufu in Giza. Ahram Online.


Tourism revenue increased by 26.8 percent on a yearly basis in FY2022/2023, jumping to a record $13.6 billion, according to data released by the Central Bank of Egypt (CBE) on Wednesday.

Meanwhile, Suez Canal revenue surged by 25.2 percent on a yearly basis in FY2022/2023, hitting a record $8.8 billion.

In a press conference in June, Suez Canal Authority (SCA) Chairman Osama Rabie attributed the Suez Canal's revenue increase to factors such as the Ukrainian-Russian war and ongoing development projects by the SCA, among other factors.

Net inflows of foreign direct investments (FDI) registered $10 billion in FY2022/2023, up from $8.9 billion a year earlier.

Outflows dropped significantly during FY2022/2023, registering $3.8 billion, down from $21 billion in FY2021/2022.

However, remittances from Egyptians abroad, which traditionally surpass the Suez Canal or tourism revenues, tumbled 30.8 percent in FY2022/2023, registering $22.1 billion, down from $31.9 billion in FY2021/2022.

Remittances account for 7.8 percent of the country's GDP, according to 2021 World Bank figures. 

Petroleum trade

Egypt’s petroleum trade balance dropped significantly from $4.4 billion in FY2021/2022 to $410 million in FY2022/2023 as exports plummeted and imports declined.

Petroleum exports dropped by $4.2 billion, including a $988.1 million decline in natural gas exports, registering $13.81 billion in FY2022/2023, down from $17.97 billion in the previous year.

Imports of petroleum products, including natural gas, declined by $138.1 million, registering $13.4 billion in FY2022/23, slightly down from $13.54 billion a year earlier.

Lower non-oil trade

The non-oil trade deficit dropped 34 percent in FY2022/2023, registering $31.6 billion, down from $47.8 billion in FY2021/2022.

This resulted from a significant drop in imports and a slight decline in exports.

Non-oil imports dropped 22.2 percent in FY 2022/23, registering $57.4 billion, down from $73.8 billion the previous year.

According to the CBE, Egypt significantly curbed imports, particularly passenger vehicles, spare parts and accessories for cars and tractors, propylene polymers, and mobile phones.

Passenger car sales in Egypt dropped 71 percent year-on-year from January to the end of June 2023, with 26,869 units sold, according to a report by the Automotive Information Council (AMIC).

Meanwhile, non-oil exports edged lower to $25.8 billion in FY2022/23 from $25.9 billion in FY2021/2022.

The CBE said Egypt's exports of organic and inorganic compounds, household electrical appliances, animal and vegetable fats, greases and oils, and ready-made clothes decreased. 

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