Egypt's Balance of Payments Turns to $2.8 Billion Surplus in FY2025/26

Egypt's balance of payments recorded an overall surplus of around $2.8 billion in fiscal year 2025/26, following a deficit of $2.1 billion in the previous year, according to data reported by Enterprise AM.

The report attributed the turnaround to net inflows in the capital and financial account amounting to $23.2 billion, compared to $10.2 billion in the previous year, more than doubling.

Net foreign direct investment (FDI) inflows rose to $18.0 billion, while record remittances from Egyptians abroad offset the widening non-oil and energy trade deficit.

The surplus reflects an improvement in foreign currency inflows into Egypt, but remains dependent on sustained capital flows and worker remittances.

What Do These Terms Mean?

Balance of Payments: A record summarizing all economic transactions between a country and the rest of the world over a period, including trade, investment, and transfers. A surplus means more money is entering than leaving.

Capital and Financial Account: A component of the balance of payments that measures the movement of investments, loans, and financial assets between a country and others, rather than trade in goods and services.

Foreign Direct Investment (FDI): Capital invested by foreigners in projects within a country in which they own assets, considered a more stable inflow than hot money.

Trade Deficit: An excess of a country's imports over its exports during a period, resulting in a net outflow of foreign currency to cover the difference.