Imports surge on global rise in commodities prices (Photo: Reuters)
Egypt's trade deficit increased by 38.8 percent to LE34.7 billion ($4.4 billion) in July from LE25 billion ($3.1 billion) in the same month last year, official statistics agency CAPMAS reported on Tuesday.
The report attributed the rise in trade deficit to a 24.3 percent increase in imports to LE47.8 billion ($6 billion) in July from LE38.5 billion ($4.8 billion) in the same period a year earlier. Additionally, exports declined by 2.6 percent to LE13.1 billion from LE13.5 billion ($1.7 billion).
The Egyptian pound was devaluated by the central bank through regular currency auctions to hit 7.73 for the dollar in July compared to 7.1401 to the dollar in the same month a year earlier. The fall in the pound value has contributed to a rise in the value of imports.
Egyptian factories have also slowed down production with some plants completely halted on the back of energy shortages as Egypt has become a net importer of oil.