Egypt current account deficit widens in July-Sept

Ahram Online, Reuters, Tuesday 20 Dec 2011

Egypt's current account deficit widened to $2.2 billion in the July-September quarter from a deficit of $1.31 billion a year earlier, the central bank said on Tuesday

Egyptian currency

Egypt's balance of payments compiled a deficit of $2.4 billion compared to a year earlier surplus of $14.7 million.

Foreign direct investment during the quarter fell to $440.1 million from $1.60 billion.

Trade balance deficit reached $7.8 billion between July and September 2011 compared to a deficit of $7.1 billion in the same period of time in 2010, despite a significant 31.2 per cent growth in remittances from Egyptians abroad which recorded $4 billion.

Tourism revenues have shrunk by 26 per cent to reach $2.7 billion in the three-month period from July to September.

Capital and financial accounts showed the largest decline as net outflows reached $1.7 billion during the up mentioned period compared to a net inflow of $5.9 billion in the same time. This huge decline has been driven mainly by deterioration in investment in financial securities in Egypt, which hit a net outflow of $1.4 billion compared to a net inflow of $4.7 billion last year.

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