The deficit increased by about $9.4 billion from $38.3 billion during the same July-March period of FY2024/2025, highlighting continued pressure on Egypt's external balances.
The figures include the impact of one month of the US-Israeli war on Iran, which broke out at the end of February and contributed to higher global inflation, tighter financial conditions, supply chain disruptions, and increased import costs.
The non-oil trade deficit widened by 23.8 percent to $34.7 billion during the first nine months of the fiscal year, up from $28 billion a year earlier.
The increase was driven by a 15.6 percent rise in non-oil imports to $61.9 billion, up from $53.6 billion in the same period of FY2024/2025. Intermediate goods accounted for 44.3 percent of the increase in non-oil imports.
Meanwhile, non-oil exports rose by $1.7 billion to $27.3 billion from $25.6 billion a year earlier.
The oil trade deficit also widened by 26.8 percent, or $2.8 billion, to $13.1 billion during the first nine months of FY2025/2026, compared with $10.3 billion a year earlier.
Oil imports increased by 19.5 percent to $17.3 billion from $14.5 billion, driven by higher imports of natural gas and crude oil, which rose by $2.6 billion and $831.1 million, respectively. Imports of oil products, however, declined by $603.2 million.
In response to heightened regional tensions, Egypt has introduced measures to curb energy consumption and reduce government spending in an effort to contain its import bill after the monthly petroleum import bill more than doubled from $1.2 billion in January to $2.5 billion in March 2026.
Oil exports edged up by $55 million to $4.22 billion from $4.17 billion, supported by higher exports of natural gas products, which rose by $234.1 million, and oil products, up by $151.1 million. Crude oil exports, however, fell by $330.2 million.
The investment income deficit widened by 18.2 percent to $14.4 billion during the first nine months of the fiscal year, compared with $12.2 billion a year earlier. Investment income payments increased by $2.3 billion to $16.4 billion, while receipts rose by $103.1 million to $2 billion.
These developments contributed to Egypt's current account deficit widening by $1.34 billion to $14.6 billion during the first nine months of FY2025/2026, compared with $13.2 billion a year earlier.
Despite this, the International Monetary Fund (IMF) raised its FY2025/2026 growth forecast for Egypt, but expects growth to slow in FY2026/2027 as the regional conflict weighs on investment, financing costs, and business confidence.
Renewed regional conflicts also pushed the Egyptian pound closer to EGP 50 per US dollar, ending a 24-day recovery streak. Nevertheless, the IMF said Egypt has shown stronger-than-expected near-term resilience.
Other factors have curbed the current account deficit from widening further.
Remittances from Egyptians working abroad rose by 32 percent to $34.9 billion during the first nine months of FY2025/2026, compared with $26.4 billion a year earlier.
As a result, net unrequited current transfers increased by 31.1 percent to $34.7 billion.
Tourism revenues also climbed by 14.9 percent to $14.4 billion from $12.5 billion.
Suez Canal transit receipts increased by 22.1 percent to $3.2 billion from $2.6 billion, supported by an 18.5 percent increase in net tonnage to 426.9 million tons and a 7.6 percent rise in the number of transiting vessels to around 10,000.
Higher tourism revenues and Suez Canal receipts helped lift the services surplus by 19.2 percent to $12.9 billion as both sectors continued recovering.
FDI inflows, outflows rise
The capital and financial account increased by $2.2 billion to record a net inflow of $ 9.9 billion during the first nine months of the fiscal year, up from a $ 7.7 billion during the same period of the previous year.
This was attributed to foreign direct investment (FDI) inflows rising to $13 billion from $9.8 billion.
FDI in non-oil sectors recorded a net inflow of $13.5 billion, supported by greenfield investments and capital increases in existing companies, which generated net inflows of $7.2 billion, up from $4.3 billion. The figure also included $3.5 billion in inflows related to the Alam Al-Roum deal recorded during October-December 2025.
Reinvested earnings rose to a net inflow of $4.5 billion from $3.1 billion, while investment inflows from non-residents' real estate purchases remained unchanged at $1.6 billion.
Net proceeds from the sale of local entities to non-residents increased to $430.9 million from $396.1 million.
In the oil and mineral resources sector, FDI recorded a net inflow of $482.4 million, down from $669.6 million, reflecting lower greenfield investment by foreign companies, which declined to $4.3 billion from $5 billion.
Cost recovery for exploration, development, and operating expenses incurred by foreign partners rose to $4.8 billion from $4.3 billion.
Portfolio investment recorded a net outflow of $4.4 billion, compared with a net outflow of $2.1 billion a year earlier, reflecting capital outflows of $9.5 billion during January-March 2026 following the outbreak of the US-Israeli war on Iran.
Banks' assets and the CBE's non-reserve assets increased to $3.4 billion during the first nine months of FY2025/2026, compared with $156.2 million a year earlier.
The CBE's liabilities recorded a net outflow of $1.7 billion, compared with $429.9 million a year earlier. Meanwhile, medium- and long-term loans and facilities recorded net disbursements of $2.7 billion, exceeding net repayments of $2.6 billion.
Total loan disbursements increased to $8.2 billion from $7.5 billion a year earlier, while principal repayments declined to $5.5 billion from $10.1 billion.
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