Egypt's current account deficit narrowed to $2.76 billion during the first quarter of this year from $4.5 billion last year, helped by a strong uptick in remittances from Egyptians working abroad, the central bank balance-of-payments data showed on Monday. The coronavirus pandemic, which hit Egypt in force in March, hurt tourism and spurred a rush by foreign investors to abandon Egypt. The current account deficit figure for the first quarter of 2019 was apparently revised upward from a $3.75 billion figure that the central bank reported earlier. Remittances from Egyptians abroad, a key source of hard currency, rose to $7.87 billion in the January-to-March quarter from $6.17 billion a year earlier. Tourism revenue, also a major foreign currency earner, decreased to $2.30 billion from $2.6 billion, Reuters calculations based on central bank data showed. Tourism directly accounts for 5% of Egypt's gross domestic product, or as much as 15% of Egypt's economy if indirect spending is included, analysts say. Net foreign direct investment (FDI) more than halved to $970.5 million in the first quarter from 2.34 billion a year prior. The first-quarter 2019 figure had been revised up from an earlier $1.81 billion. Foreign portfolio investments shrank by $8.21 billion, reversing an inflow of $6.94 billion a year earlier. The trade deficit declined to $9.35 billion from $10.5 billion in the first quarter of 2019, while Suez Canal revenue increased to $1.43 billion from $1.34 billion. "These improvements are all results of the economic reforms which commenced in 2016 and have continued to drive the improvement in macroeconomic indicators," the central bank said in a statement released with the balance-of-payments figures.
