Egypt Records $2.8 Billion Balance of Payments Surplus, Boosted by Inflows

Egypt's balance of payments shifted to an overall surplus of $2.8 billion in the 2025/2026 fiscal year, following a deficit of $2.1 billion in the previous year, according to Central Bank of Egypt data cited by Daily News Egypt.

Net foreign direct investment inflows rose to $18 billion, while remittances from Egyptians working abroad increased by 29.6% to $47.3 billion, forming one of the most important sources of foreign currency during the year.

Conversely, the current account deficit widened to $22.5 billion, resulting from an expanded trade deficit as imports increased, painting a mixed picture of improved capital inflows alongside a growing trade gap.

Suez Canal revenues recorded a 21.6% increase to $4.4 billion, while tourism revenues grew by 10.3% to $18.4 billion, reinforcing service-related foreign currency sources and supporting the stability of foreign exchange reserves.

What Do These Terms Mean?

Balance of Payments: A record summarizing all financial and economic transactions between a country and the rest of the world over a period, including trade, investment, and remittances. A surplus means more money entered the country than left it.

Current Account: A component of the balance of payments covering trade in goods and services, investment income, and transfers. A deficit means the country consumes or invests more than it produces relative to external sources.

Foreign Direct Investment: Capital injected by a foreign investor into a project or company within the country aimed at long-term ownership and management, rather than just purchasing easily sellable shares.

Remittances: Money sent by workers abroad to their families in their home country, serving as a primary source of hard currency for economies like Egypt.