In Q2 of 2022, the country’s current account deficit fell by almost half as non-oil imports tumbled by nearly 20% from the previous quarter
Egypt’s trade deficit saw a 0.6% bump during August 2022 to reach $4.18 billion, compared to $2.7 billion recorded in July 2022, and $4.15 billion in August 2021, according to new data from the Central Agency for Public Mobilization and Statistics (CAPMAS).
In Q2 of 2022, the country’s current account deficit fell by almost half as non-oil imports tumbled by nearly 20% from the previous quarter.
CAPMAS revealed that the value of Egyptian exports fell by 7.6% to hit $3.33 billion in August, compared to July’s $3.13 billion and $3.61 billion in August 2021.
The decline in the value of exports was attributed to petroleum products which dropped by 19.8%, crude petroleum by 49%, raw plastic materials by 3.60%, and pasta and food preparations by 17%.
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Otherwise, some commodities saw an uptick in exports such as natural and liquefied gas which grew by 179.10%, fertilizers by 25.40%, ready-made garments by 12.10%, and fresh fruits by 72.80%.
Egyptian import's value slowed by 3.2% to reach $7.51 billion in August 2022, higher than July’s $5.81 billion but lower than August 2021’s $7.76 billion.
Non-oil imports in Q2 2022 fell by $3.84 billion from Q1 to $16.69 billion, compared to $16.74 billion in 2021’s Q1.
Imports of medicines and pharmaceuticals dropped by 21.80%, raw iron or steel materials by 4.70%, maize by 16%, and soybeans by 7.50%.
Imports of crude petroleum increased by 91.80%, petroleum products by 35.20%, and wheat by 79%.
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Egypt has been dealing with a shortage of foreign currency since the Russia/Ukraine conflict began, with import and export issues exacerbated by global supply chain disruption. The Letters of Credit (L/C or documentary credits) system, which many pointed to as an additional barrier to importing, will be canceled within the coming two months.