Egypt's current account deficit more than doubled to $5.1 billion in the January-March quarter from $2.3 billion a year earlier, central bank data showed on Sunday. Net foreign direct investment inflows edged down to $3.7 billion from $3.8 billion in the same period, according to the data.
The widening deficit reflects ongoing economic pressures, including higher import costs and reduced tourism revenues. The central bank's report did not specify the exact causes, but analysts point to global inflation and regional instability as contributing factors.
Despite the deficit, Egypt continues to attract significant foreign investment, with net FDI inflows remaining near $3.7 billion. The government has been implementing reforms to stabilize the economy, including currency devaluation and fiscal consolidation measures.
The data comes as Egypt seeks to boost renewable energy investments, with a focus on building stronger institutions to accelerate the transition. However, the current account deficit poses challenges for financing these green initiatives.
