RIYADH: Remittances from Egyptians working overseas recorded a significant jump during the first nine months of the 2024/2025 fiscal year, reaching an unprecedented $26.4 billion.
This marks an 82.7 percent annual increase compared to the $14.4 billion recorded in the same period of the previous financial year, according to data from the country’s central bank.
The surge was especially pronounced in the third quarter, from January to March, when remittances saw an annual climb of 86.6 percent to about $9.4 billion, up from $5 billion in the previous year.
On a monthly basis, March saw inflows of approximately $3.4 billion, reflecting a 63.7 percent increase compared to the $2.1 billion registered in the same month of 2024.
The rise in remittances reflects broader improvements in the country’s external financial position, indicating growing trust from Egyptians abroad and helping to ease pressure on foreign currency reserves.
It also highlights the impact of recent government and central bank measures aimed at stabilizing the exchange rate and encouraging the flow of foreign currency through formal channels.
Net international reserves rose to $48.5 billion at the end of May, up from $47.8 billion in March, indicating stronger foreign currency inflows and improved liquidity.
Egypt’s foreign currency position has been further supported by ongoing economic reforms implemented under an International Monetary Fund-backed stabilization program.
Prime Minister Mostafa Madbouly reported in May that Egypt achieved real gross domestic product growth of 3.9 percent during the first half of the fiscal year, while private sector investment rose by 80 percent and foreign direct investment increased by approximately 17 percent.
Non-oil exports also grew by around 33 percent in the first nine months of the fiscal year, reflecting stronger activity in the industrial, tourism, and technology sectors.
Moody’s affirmed Egypt’s Caa1 long-term foreign and local currency ratings with a positive outlook in February, citing improved debt service prospects, higher foreign reserves, and falling borrowing costs.
The government reported a drop in the general budget deficit to 6.5 percent over the past 10 months and aims to reduce debt to 85 percent of GDP by the end of June, down from 96 percent the previous year.
However, inflationary pressures have re-emerged. Monthly urban headline consumer price index inflation rose to 1.9 percent in May, up from 1.3 percent in April and compared to a contraction of 0.7 percent in May 2024.
On an annual basis, urban inflation reached 16.8 percent in May, up from 13.9 percent in April. Core inflation followed a similar trajectory, rising to 13.1 percent year-on-year in May from 10.4 percent the previous month.
