Trade deficit widened by 71% in September

Egypt’s trade deficit reached LE27.9 billion in September 2014, according to a report released Sunday by state statistics agency CAPMAS.

The gap between the value of goods and services Egypt sold to the world and those it purchased from abroad widened by almost 70.9 percent, compared to September 2013, when the deficit stood at LE16.3 billion.

The expanding deficit is due to both a drop in the value of exports from Egypt, and an increase in imports from abroad.

During the month of September, the value of imports to Egypt was 2.9 times the value of exports from Egypt.

The total value of exports in September 2014 reached LE14.6 billion, a decrease of 12.5 percent compared to the same month last year. CAPMAS attributed the decline to lower market prices for Egyptian exports, such as petroleum products, plastics, dairy products, fresh fruit and tiles.

Meanwhile, the value of imports grew by 28.8 percent compared to the same month last year, reaching LE43.5 billion in September 2014. This, CAPMAS says, comes despite declining prices for petroleum, iron and steel, motor vehicles and parts, and corn.

During the 2013/14 Fiscal Year, which ended on June 30, 2014, Egypt’s trade deficit reached around US$33.7 billion, or LE241 billion at official rates, according to Central Bank Figures.