Egypt's Current Account Deficit Narrows in Q3 2025

Egypt's current account deficit improved markedly in the third quarter of 2025, narrowing due to a record 69.6% year-on-year surge in remittances between July and May of the 2024-25 fiscal period and increased tourism revenues. Despite these gains, Egypt's overall balance of payments recorded a $1.9 billion deficit, primarily due to reduced capital inflows and a significant drop in Suez Canal revenues amid Red Sea disruptions. The non-oil trade deficit narrowed by 12.5% in the first quarter of 2025, as non-oil exports outpaced imports, with the UAE, Italy, and Libya emerging as leading importers of Egyptian goods. However, Egypt continues to face headwinds from inflation, a widening oil trade deficit, and lower foreign direct investment. The country is pursuing economic reforms under an IMF-backed program to stabilize its finances. These developments reflect Egypt's ongoing economic challenges amid geopolitical tensions and shifting trade dynamics.