As we had expected, COVID-19 is still casting its shadows on Egypt’s external balance. It drove the current account deficit (CAD) to widen further by 52% y/y and 74% q/q in Q2 FY21 ended 31 December 2020, recording USD4.8bn—the biggest deficit since the IMF-backed economic reform program in 2016. COVID-19-related headwinds are still posing structural challenges to the export sector, tourism, and remittances despite the rebound in global economic activity.
Mona Bedeir
Senior Economist
T +202 3300 5722