Egypt’s trade deficit increased by 38.8 percent to 34.7 billion Egyptian pounds ($4.4 billion) in July from 25 billion pounds ($3.1 billion) in the same month last year, official statistics agency CAPMAS reported Tuesday.
The report attributed the rise in trade deficit to a 24.3 percent increase in imports to 47.8 billion pounds($6 billion) in July from 38.5 billion pounds ($4.8 billion) in the same period a year earlier. Additionally, exports declined by 2.6 percent to 13.1 billion pounds from 13.5 billion pounds ($1.7 billion).
The Egyptian pound was devaluated by the central bank through regular currency auctions to hit 7.73 for the dollar in July compared to 7.1401 to the dollar in the same month a year earlier. The fall in the pound value has contributed to a rise in the value of imports.
Egyptian factories have also slowed down production with some plants completely halted on the back of energy shortages as Egypt has become a net importer of oil.
source: Ahram Online
