CAIRO: In its monthly statistical bulletin, the Central Agency for Public Mobilization and Statistics (CAPMAS) noted a 28.6 percent decline in the trade balance’s deficit, and the deficit stood at 17.3 billion EGP ($2.4 billion) during May 2014 compared with 24.3 billion EGP a year earlier.
During the comparison period, Egyptian exports soared 7.6 percent to value 18.5 billion EGP in May compared to 17.25 billion EGP for the same period a year before due to a tangible hike in exports like gold, fresh fruits, potatoes and plastics.
Egypt’s imports experienced a 13.6 percent decline during May, registering 35.9 billion EGP compared with 41.5 billion EGP in the same period the year before. This was caused by a decline in the importing of petroleum products, and unrefined iron and steel.
Ahmed Qura, an economic expert and former head of Al-Watany Bank told The Cairo Post Tuesday that the decline of the Trade balance deficit represents promising improvements.
“The decline in the trade balance reflects the improvement in the political and economic situations in Egypt during the past few months, and the plan adopted by the government to open new horizons for investment like the African countries, and will be greatly influenced in the future by trade relations with Russia,” he said.
But despite intense efforts by the government to cover the trade balance deficit, Qura said the upcoming period could see a surge in the trade deficit due to a rising import rate of equipment and services needed for executing major projects in and around the Suez Canal.