Central Bank of Egypt. Photo: Al-Ahram
Egypt’s overall balance of payments (BOP) recorded a $2.1 billion deficit, narrowing significantly from a $9.7 billion surplus the previous year, as an improved current account was offset by the absence of exceptional capital inflows.
The current account deficit narrowed to $15.4 billion, a 25.9 percent year-on-year decline from $20.8 billion, with most of the improvement concentrated in the second half of FY2024/2025. The trade deficit, however, widened by 28.9 percent to $51 billion, as exports rose to $40.2 billion (including $34.6 billion in non-oil exports) while imports increased to $91.2 billion.
The services surplus grew by 5.4 percent to $15.1 billion, supported by tourism revenues, which climbed to $16.7 billion on the back of 17.4 million visitors.
In contrast, Suez Canal receipts fell sharply by 45.5 percent to $3.6 billion due to the Red Sea rerouting.
The income deficit narrowed to $15.8 billion, while the transfers surplus surged to $36.3 billion, driven by a 66.2 percent jump in remittances, which reached $36.5 billion.
The capital and financial account posted net inflows of $10.2 billion, down from $29.9 billion the previous year, excluding the one-off $35 billion Ras El-Hekma deal.
Foreign Direct Investment (FDI) recorded $12.2 billion in net inflows, including $11.6 billion in non-oil investments—mainly $7 billion in services and $1.9 billion in real estate—alongside $600 million in oil-sector inflows.
Portfolio investments registered $1.6 billion in net inflows.
Egypt’s external debt profile continued to rise.
Net external liabilities increased by 4.3 percent to $293.6 billion, equivalent to 80.5 percent of GDP.
Total external debt grew by 5.5 percent to $161.2 billion, representing 44.2 percent of GDP. Long-term debt reached $130.3 billion, or 80.8 percent of the total, while short-term debt rose to $30.9 billion, accounting for 19.2 percent and amounting to 63.5 percent of the CBE's net international reserves.
Multilateral loans accounted for 34.4 percent of GDP (or $44.8 billion), while bilateral loans represented 14.3 percent, bonds and sukuk 22.1 percent, deposits 7.1 percent, and buyers’ credits 14.8 percent. Debt-service payments increased by 11 percent to $38.7 billion, pushing the debt-service ratio up to 53.6 percent of exports.
GCC deposits at the CBE remained unchanged, standing at $9.3 billion as of June 2025. Kuwait held $4 billion of this amount, and Saudi Arabia $5.3 billion.
These deposits account for 7.1 percent of Egypt’s long-term external debt and 35.9 percent of its short-term debt.
By creditor ranking, Kuwait is Egypt’s third-largest bilateral lender with $6 billion in total claims, following Saudi Arabia ($13.5 billion) and the UAE ($11.7 billion).
The report describes these deposits as stable liquidity-support facilities that continue to play a crucial role in external-debt management amid Red Sea disruptions.
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