Egypt’s present account deficit surges in July-Sept 2024, central financial institution says

CAIRO (Reuters) -Egypt’s present account deficit greater than doubled to $5.9 billion in July-September 2024, in contrast with $2.8 billion within the year-ago quarter, as Suez Canal revenues stay depressed, the central financial institution mentioned on Thursday.

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

The variety of ships passing by the canal fell 51% as Pink Sea tensions compelled a number of delivery firms to divert their routes, the central financial institution mentioned.

The Iran-backed Houthis have been attacking vessels within the Pink Sea area in what they referred to as acts of solidarity with Palestinians within the Israel-Hamas struggle in Gaza, driving ships away from Egypt’s essential income maker.

The dip in canal revenues was offset by an nearly doubling of remittances to $8.3 billion from $4.5 billion within the July-to-September 2023 quarter, the central financial institution mentioned.

Egypt’s internet international direct funding inflows rose to $2.7 billion from $2.3 billion over the identical interval, whereas tourism revenues rose to $4.8 billion from $4.5 billion.