CBE: BoP Surplus Records $311.4 Million in Q1 of 2021/22

The Egyptian balance of payments (BoP), which measures the economy's transactions with the outside world, achieved a total surplus of $311.4 million during Q1 of 2021/22; compared to a deficit of $69.2 million for the same period in the previous year.

The Central Bank of Egypt (CBE) confirmed in a report on Wednesday that the performance of the balance of payments for the first quarter indicates the ability of the Egyptian economy to withstand the negative repercussions of the pandemic facing the global economy.

CBE indicated that the balance of payments achieved a total surplus despite the high current account deficit to reach about $4 billion; compared to $2.8 billion during the same comparison periods.

The central bank clarified that the increase in the current account deficit is due to the increase in the non-oil trade balance deficit by 26.1% to reach about $11 billion during Q1 (July/September 2021), as a result of the increase in imports of medical supplies in light of the state’s efforts To combat Corona, as well as the increase in imports of production requirements.

The bank stressed that the improvement in the service balance contributed to reducing the current account deficit, as tourism revenues witnessed an increase of about $2 billion, recording about $2.8 billion.