Egypt's trade deficit in August 2012 dropped 14 per cent below the same month a year earlier to reach LE18 billion, the state statistics agency announced on Sunday.

This is the second consecutive monthy fall in the trade deficit after it fell in July. The deficit had surged for six consecutive months until June 2012.

An 11 per cent drop in imports drove the drop, offsetting a 7 per cent fall in exports.

The deficit had reached LE21 billion in August 2011.

Imports fell 11 per cent to LE31 billion in August 2012 due to a drop in the price of commodities, especially basic construction materials, wheat and vehicles.

Exports also dropped, mainly due to a decline in the value of several Egyptian exports, including petroleum products, cement and dairy products.