Egypt’s trade deficit narrows by 25% in 2017

Egyptian exports have over the past year found new markets

Egypt’s trade deficit narrowed by 25 per cent in 2017 from the year before due to a decline in imports and rise in exports, the trade ministry said yesterday.

Non-oil exports rose to about $22.4 billion (Dh82.2 billion) in 2017 from about $20.4 billion the previous year

This is a 10 per cent increase, according to Trade Minister Tarek Kabil, in a statement.

Imports declined to about $56.8 billion from about $66.3 billion, a 14 per cent decrease, Kabil said.

Egyptian exports have over the past year found new markets as the pound lost half its value in a currency flotation in November 2016.

“Egypt’s positive external trade indicators confirms the success of the ministry’s efforts to curb random importation and the substitution of local alternatives with imports,” Kabil said.

Egypt’s economy has been struggling since a 2011 uprising drove foreign investors and tourists away, but an International Monetary Fund loan agreed in 2016 is hoped to put the country on the right track.

Tightening the trade deficit is key for Egypt which has embarked on sweeping economic reforms since it signed the $12 billion IMF deal to boost growth.