Egypt Sees Surge in Expat Remittances to $10.8 Billion in Q1

Egypt recorded a sharp rise in remittances from citizens working abroad during the first quarter of fiscal year 2025/26, offering a rare bright spot in an otherwise pressured external accounts picture, according to data released Wednesday by the Central Bank of Egypt (CBE).

Remittances climbed to $10.8 billion between July and September 2025, up from $8.3 billion in the same period a year earlier, underscoring the continued importance of overseas Egyptians as a key source of foreign currency for the country.

The increase came even as Egypt’s balance of payments deficit widened to $1.6 billion, compared with $991.2 million in the corresponding quarter of the previous fiscal year, reflecting mounting pressures from trade and investment flows.

The CBE data showed improvements across several major hard-currency earners. Tourism revenues rose to $5.5 billion in the first quarter of the current fiscal year, compared with $4.8 billion a year earlier, supported by stronger visitor numbers and higher spending.

Meanwhile, Suez Canal revenues increased to $1 billion, up from $931.2 million in the same period last year, despite ongoing geopolitical risks affecting global shipping routes. Officials have recently pointed to early signs of recovery in maritime traffic through the canal.

These gains, however, were offset by a further deterioration in Egypt’s trade balance. The trade deficit widened to $14.6 billion between July and September 2025, compared with $14 billion in the same period of 2024.

Exports showed notable growth, rising to $11.1 billion from $9.1 billion year on year, but this was outpaced by a surge in imports, which increased to $25.7 billion, up from $23.1 billion in the first quarter of the previous fiscal year.

The figures also revealed a decline in foreign direct investment, which slipped to $2.4 billion in the first quarter of the current fiscal year, down from $2.7 billion a year earlier, highlighting lingering investor caution amid global uncertainty and domestic economic adjustments.