Egypt's trade deficit drops 37.1% in January: CAPMAS

CAIRO - 12 April 2017: Egypt trade deficit dropped to $2.34 billion in January, compared to $3.72 billion in the same month a year earlier, marking a 37.1 percent decrease, state statistics body announced Tuesday.

Exports surged 27.1 percent to $1.82 billion in January, the Central Agency for Public Mobilization and Statistics (CAPMAS) said in its monthly report, citing the rise to higher prices of crude oil, fertilizers, pastries and fresh oranges.
However, exports of dairy products, textiles and clothes slowed in January.

In an effort to slash an increasing trade deficit and overcome a sharp foreign currency shortage at local banks, the Central Bank of Egypt free-floated the pound in November. The government also imposed restrictions on what they labeled as “luxury imports” to ease demand on dollars.

Exports boomed after the pound flotation, becoming more competitive with lower prices.

On the other hand, imports dropped 19.3 percent to $4.16 billion in January, down from $5.15 billion in the same period a year earlier. The decline was led by lower costs of - passenger cars, iron and steel raw materials, and wheat.

Meanwhile, imports of crude oil, corn, petroleum products and pharmaceuticals were up year-on-year in January.