Cairo – Mubasher: Egypt’s current account deficit narrowed by 39.2% year-on-year (YoY) to $2.8 billion in the third quarter (Q3) of fiscal year 2019/2020, compared to $4.5 billion in the year-ago period, according to data released by the Central Bank of Egypt (CBE).

For the first nine months of FY19/20, the current account deficit registered $7.3 billion, down from $9.8 billion in the corresponding period a year earlier, the CBE said in a statement late on Monday.

Remittances

The narrowed deficit was supported by an increase in remittances of Egyptian expatriates by $1.7 billion or 27.4% YoY to $7.9 billion in Q3 of FY19/20 from $6.2 billion.

As for the first nine months of FY19/20, remittances of Egyptians living abroad surged by 18.3% to $21.54 billion from $18.21 billion in the year-ago period.

Tourism revenues

Egypt’s tourism revenues declined by $300 million or 11.5% to $2.3 billion in the January-March period, compared to $2.6 billion in the year-ago period.

Over the nine-month period ended on 31 March, the country’s tourism revenues fell to $9.55 billion from $9.39 billion in the corresponding period a year earlier.

Net FDI

Net foreign direct investment (FDI) inflows plunged by 58.5% YoY to $970.5 billion in Q3 of FY19/20, compared to $2.3 billion in the same period of FY18/19.

As for the first nine months of FY19/20, net FDI inflows retreated by $595 million to $5.9 billion from $6.5 billion in the prior-year period.

Outflows

Portfolio investments registered net outflows of $8.2 billion in the three-month period ended on 31 March, compared to net inflows of $6.9 billion in the same quarter a year earlier.

Over the nine-month period ended on 31 March, portfolio investments posted net outflows of $7.9 billion, compared to net inflows of $1.1 billion in the year-ago period.