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Foreign trade and payments: The current-account surplus also widens
POSTED: 11:46 a.m. EDT, February 20,2007
The surplus on the services (invisibles) balance widened, in the same period, to US$3.1bn, from US$2.2bn a year earlier, thanks to a large increase in receipts from the Suez Canal (up by 14%, to US$1bn) and a smaller rise in tourism revenue (up by 5.6%, to US$2.5bn). Thanks to rising global interest rates, investment income also grew markedly, by 66.9%, to US$646m, up from US$387m a year earlier. Invisibles payments, however, declined slightly, to US$2.2bn, from US$2.5bn a year earlier, owing to small contractions in transportation and government transfers. Finally, the surplus on the balance of transfers widened slightly, by US$62m to US$1.4bn. The net result was a clear widening of the current-account surplus, from US$208m in July-September 2005 to US$1.4bn in the same period of 2006.
| Capital account, Jul-Sep |
| (US$ m) |
| |
2005 |
2006 |
| Capital & financial account |
1,882.9 |
347.9 |
| Capital account |
0.0 |
-38.8 |
| Financial account |
1,882.9 |
386.5 |
| Direct investment outflows (net) |
-18.6 |
-58.2 |
| Direct investment inflows (net) |
1,947.0 |
3,237.1 |
| Portfolio investment outflows (net) |
78.5 |
-96.0 |
| Portfolio investment inflows (net) |
2,579.2 |
37.9 |
| Bonds |
2,786.1 |
-344.0 |
| Other investment (net) |
-2,703.2 |
-2,734.3 |
| Net borrowing |
34.1 |
80.0 |
| Medium & long term loans (net) |
-278.1 |
-440.0 |
| Drawings |
239.3 |
19.6 |
| Repayments |
-517.4 |
-459.6 |
| Medium term suppliers credit (net) |
-94.9 |
-122.4 |
| Drawings |
58.1 |
7.8 |
| Repayments |
-153.0 |
-130.2 |
| Short term suppliers credit (net) |
407.1 |
642.4 |
| Other assets |
-2,293.8 |
-2,551.1 |
| Central bank |
5.6 |
-28.4 |
| Banks |
-1,550.1 |
-1,789.8 |
| Other |
-749.3 |
-732.9 |
| Other liabilities |
-443.5 |
-263.2 |
| Central bank |
1.7 |
3.5 |
| Banks |
-445.2 |
-266.7 |
| Net errors & omissions |
-278.6 |
-723.7 |
| Overall balance of payments |
1,811.9 |
1,061.1 |
| Change in reserve assets (- = increase) |
-1,811.9 |
-1,061.1 |
| Source: Central Bank of Egypt. | |
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