Egypt’s Current Account Deficit Surges in Q3 24

Egypt’s current account deficit more than doubled to $5.9 billion in July-September 2024, compared with $2.8 billion in the year-ago quarter, as Suez Canal revenues remain depressed, the central bank said on Thursday.

Suez Canal revenues fell 61.2% to $931.2 million in the fiscal first quarter, which began July 1, from $2.4 billion in the year-ago period.

The number of ships passing through the canal fell 51% as Red Sea tensions forced several shipping companies to divert their routes, the central bank said.

The Iran-backed Houthis have been attacking vessels in the Red Sea region in what they called acts of solidarity with Palestinians in the Israel-Hamas war in Gaza, driving ships away from Egypt’s crucial revenue maker.

The dip in canal revenues was offset by an almost doubling of remittances to $8.3 billion from $4.5 billion in the July-to-September 2023 quarter, the central bank said.

Egypt’s net foreign direct investment inflows rose to $2.7 billion from $2.3 billion over the same period, while tourism revenues rose to $4.8 billion from $4.5 billion.