Egypt's balance of payments posted an overall surplus of 2.8 billion dollars in the fiscal year 2025-2026 ended in June, compared with a deficit of 2.1 billion a year earlier, the Central Bank of Egypt announced on Monday, 12 October.

This recovery rests on inflows recorded in the capital account and the financial account. Their net balance reached 23.2 billion dollars, more than double the 10.2 billion recorded in the previous fiscal year. These inflows offset outflows linked to trade in goods, investment income and other current transactions.

Foreign direct investment provided a net inflow of 18 billion dollars, after 12.2 billion a year earlier. Portfolio investment generated net inflows of 4.2 billion dollars, compared with 1.6 billion. In non-oil activities, net direct investment reached 17.8 billion dollars, notably thanks to company formations, capital increases and reinvested earnings.

The situation remains tighter on the current account, however. Its deficit widened to 22.5 billion dollars, from 15.4 billion in the 2024-2025 fiscal year. The goods trade deficit rose 27.1% to 64.8 billion dollars, while the deficit on investment income grew 33.8% to 21.2 billion.

The non-oil trade deficit stood at 46.6 billion dollars, up 25.4%. Non-oil imports rose 16.9% to 83.9 billion dollars, while corresponding exports grew 7.8% to 37.3 billion. The oil balance also remained in deficit, at 18.3 billion dollars, driven by larger purchases of natural gas and crude oil.

Several sources of foreign currency earnings limited the deterioration in the current account. Transfers from Egyptians working abroad jumped 29.6% to 47.3 billion dollars. Tourism revenues rose 10.3% to 18.4 billion, while Suez Canal receipts increased 21.6% to 4.4 billion dollars with the partial recovery in traffic.

The return to an overall surplus means financial inflows were sufficient to cover the current account deficit over the full fiscal year. It does not, therefore, signal a return to trade balance, as the country's external financing need on the current account has instead increased.