Money Sent Home by Egyptians Working Abroad Jumped to $3 Billion in January
Money sent home by Egyptians living abroad went up by 83.2% in January 2025 compared to the same month last year, reaching about $2.9 billion. This is the highest amount ever recorded for January, according to the Central Bank of Egypt.
In total, from July 2024 to January 2025, these money transfers increased by 81% compared to the same period the year before, reaching around $20 billion.
Trade Balance
Egypt’s trade balance, which measures the difference between exports and imports, slightly improved in January 2025. According to recent data, the trade deficit went down by 0.58%, reaching $3.42 billion. This is a small improvement compared to January 2024, when the trade deficit was $3.44 billion. A trade deficit means that Egypt imported more goods than it exported.
One reason for the improvement is the rise in Egyptian exports. In January 2025, exports increased by 20.1% compared to the same time last year. They reached a total value of $4.36 billion. This means that Egypt sold more goods and products to other countries, which brought more foreign money into the country.
At the same time, imports also grew, but at a slower rate. Imports rose by 10.1%, reaching $7.78 billion. This means Egypt bought more goods from other countries, but the increase was not as high as the rise in exports. While Egypt still has a trade deficit, the faster growth in exports helped reduce the size of the gap between what the country sells and what it buys.
Credit Rating
S&P Global Ratings, a well-known credit rating agency, recently shared its latest view on Egypt’s economy. It kept Egypt’s credit rating at “B-/B”, which is a sign that the country is still considered a high-risk investment, but it did not get worse. More importantly, S&P changed its outlook on Egypt from “negative” to “stable”. This means that S&P believes Egypt’s economic situation is not likely to get worse soon.
S&P explained that Egypt still faces big challenges. The country needs large amounts of money from both inside and outside to pay for its budget and foreign debt. Because of this, Egypt is affected by changes in global financial markets. For example, if interest rates go up around the world, it becomes more expensive for Egypt to borrow money. If fewer investors want to lend to risky countries, Egypt might find it harder to get funding.
However, S&P also noted some positive signs. Egypt is continuing its economic reform plans, which aim to improve the country’s economy in the long term. These reforms include changes in government spending, more support for private businesses, and efforts to attract foreign investment. If these plans work, Egypt could become less dependent on foreign loans and more self-sufficient.
In summary, while Egypt still has many economic difficulties, its efforts to grow its exports and follow through on reforms have shown some positive results. The slight improvement in the trade deficit and the stable credit rating outlook suggest that Egypt is on a slow but steady path to economic recovery. However, the country remains vulnerable to changes in the global economy, and it will need to keep working on its financial and economic stability.
Published: 17th April 2025
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