Egypt’s current account deficit sees 77.2% drop

Egypt’s current account deficit dropped 77.2 percent to $1.8 billion in the first half of the country’s current fiscal year, reported its central bank.

The financial institution revealed this deficit reduction was fueled by Egypt’s current account turning a $1.41 billion surplus in the October to December quarter of 2022 as imports dropped and exports rose.

This came after the country saw a $3.19 billion deficit between July and September — the first quarter of Egypt’s fiscal year.

During most of 2022, import restrictions were in place to tackle the North African country's current account shortfall.

The downturn in the business sector softened in April as cost inflation dropped to a one-year low, according to a report released by US-based S&P Global.

However, Egypt’s Purchasing Managers’ Index stood at 47.3 in April, below the neutral 50.0 mark but above the March figure of 46.7.

“The latest PMI figures for Egypt provided some promising hints for the direction of the non-oil economy, particularly on inflation,” said David Owen, a senior economist at S&P Global Market Intelligence.

“The findings suggest that headline inflation in Egypt should begin to soften over the coming months after hitting a near six-year high of 32.7 percent in March, which will help to ease the cost-of-living crisis,” Owen added.