Egypt’s BOT rises by 15 percent in 1st half of 2018

CAIRO - 5 August 2018: The balance of trade (BOT) rose by 15 percent during the first half of 2018, compared to the same period last year, hitting LE 44.86 billion up from LE 38.83 billion, according to a report released by the General Authority for Export and Import Control (GOEIC) on Friday.

Imports and exports increased by 14 and 16 percent, respectively. The top sectors achieving growth in terms of exportation are chemicals and fertilizers (26 percent), handicrafts (17.8 percent), healthcare industry (16.4 percent), textile industry (11 percent), and books and artistic works (38 percent).

The sectors that recorded the highest amounts of imports are furnishings (75 percent), leather products (44 percent), handicrafts (39.3 percent), building materials (29 percent), and clothing (27 percent).

Minister of Industry and Trade Amr Nassar said that the positive indicators of the country’s external trade showcase the recovery of the national economy and Egypt’s restoration of its place on the world trade map. He added that measures will be taken to accelerate trade pace and boost external exports.

In the fiscal year 2017/2018, economic growth went up to 5.3 percent from 4.2 percent in the precedent fiscal year, recording the highest rate in 10 years, the Ministry of Planning, Follow-Up, and Administrative Reform indicated Wednesday in its official Facebook account.

Investment and exports make up 74 percent of that growth. The last quarter of the past fiscal year experienced 5.4 percent of economic growth, compared to 5 percent at the same period in the previous fiscal year.

Egypt’s budget deficit for the 2017-2018 fiscal year was 9.8 percent of gross domestic product (GDP), down from 10.9 percent the previous year, Deputy Finance Minister Ahmed Kojak said in July.

Egypt achieved a primary fiscal surplus for the first time in 15 years, making LE 4 billion ($224 million), Kojak said in a press conference.

Egypt’s tax revenues increased by 36 percent in fiscal year 2017-2018, to LE 628 billion, he added.

Egypt increased subsidies on fuel to LE 121 billion, up from previous projections of LE 110 billion, Kojak pointed out.

The Egyptian government is seeking to improve the business environment to attract local, Arab and foreign private sector investments, newly appointed CEO of General Authority for Investment and Free Zones (GAFI) Mohsen Adel said on Tuesday.

Adel pointed out that the past period witnessed a transformation in the economic structure, adding that the Ministry of Investment and International Cooperation led several legislative amendments and a strong configuration of investment infrastructure in Egypt.