Trade deficit exceeds LE26 bn in November

Egypt’s trade deficit reached LE26.49 billion in November 2014, growing by 13.9 percent compared to the same month last year, when it stood at LE23.26 billion, according to the state statistics agency CAPMAS.

Exports inched up by 3.4 percent year-on-year to reach LE16.17 billion. According to CAPMAS, the increase was driven by low prices for Egyptian goods, including petroleum and plastics.

However, the slight increase in exports was overshadowed by a 9.6 percent year-on-year increase in imports, which reached LE42.65 billion in November. CAPMAS attributes the growth in imports to low global prices for commodities such as wheat, petroleum products, motor vehicles and gold.

CAPMAS has not released figures for October 2014, but in September, the trade deficit stood at LE27.9 billion, a gap about five percent wider than November data.

During the fiscal year 2013/14, which ended on June 30, 2014, the trade deficit reached around US$33.7 billion, or LE241 billion at official rates at that time, according to the Central Bank of Egypt.

This deficit has put pressure on Egypt’s foreign reserves, which fell to US$15.43 billion at the end of January, as well as the exchange rate for the Egyptian pound.