Egypt's balance of payments recorded an overall surplus of some US$1.5 billion in 2013/2014, against $237 million a year earlier, according to a statement by The Central Bank of Egypt (CBE). On top of Sisi's economic reforms was the gradual removal of subsidies, which eat up more than 25 percent of the state budget. In June, Sisi approved a revised and tightened budget for fiscal year 2014-15 after the deficit was reduced to 240 billion EGP ($33.57 billion,) or 10 percent of GDP, while the budget draft predicted a 292 billion EGP shortfall.
CBE said that the country's current account deficit improved, registering only some $2.4 billion against some $6.4 billion a year earlier , while the capital and financial account resulted in a net inflow of around $4.9 billion compared with some $9.8 billion in the year to end-June 2013.
Meanwhile the improvement in the current account deficit could have been larger if not for the drop in services surplus from some $5.0 billion to $978.5 million, CBE showed. "The Egyptian government is taking serious steps in economic reform," said Chris Jarvis, the IMF mission chief for Egypt, in his speech at the Euromoney Egypt Conference held in Cairo from Sept. 16-17. The statement pointed out that such a drop came mainly on the back of the 48.0 percent decline in tourism revenues, to roughly reach $5.1 billion against some $9.8 billion.
In addition to this, the trade deficit increased by 9.8 percent to about $33.7 billion versus $30.7 billion, owing to the 3.7 percent rise in merchandise imports, to record some $59.8 billion against around $57.7 billion and the 3.2 percent retreat in merchandise exports to some $26.1 billion from some $27.0 billion, CBE explained .
The bank added that foreign direct investment into Egypt increased to about $4.1 billion in 2013/2014 from about $3.8 billion, driven by the rise in the net inflow for oil sector investments from some $1.0 billion to some $1.6 billion, while the net inflow for greenfield investments declined by 6.7 percent, to register $2.2 billion compared with $2.4 billion a year earlier.
