Cairo – Mubasher: Egypt's balance of payments deficit rose 240% to $3.4 billion in the first half of 2015/16, up from $1.0 billion for the year-ago period, said the Central Bank of Egypt (CBE) in a press release.
BOP deficit increase resulted from a rise in the current account deficit to $8.9 billion during the first six month of 2015/16 from $4.3 billion a year earlier, CBE said.
The current account deficit is ascribed to the state H1-FY15/16 trade deficit that stood at $19.5 billion against $20.4 for the same period last year, CBE added.
Merchandise export rate also dropped 26% to $9.1 billion, versus $12.3 billion.
Egyptian Workers' remittance fell by 10.6%. Likewise, tourism revenues declined by 32.5% year-over-year to $2.7 billion from $4 billion.
The net inflow of the capital and financial account reached $9.2 million, compared to $772 million last year.
In addition, direct foreign investments increased to $3.1 billion from $2.6 billion, backed by an increase in net inflows for making investments or raising capitals.
Meanwhile, portfolio investment in Egypt saw a slide to $1.6 billion from $2.1 billion for the year-ago period.
In the first quarter of 2015/16, BOP deficits settled at $3.7 billion, while the surplus reached $410 million for the year-ago period.
