Balance of payments deficit falls back by 51 percent
Egypt, Economics, 5/21/2002

In light of the very negative consequences of the US September 11 attacks on the Egyptian economy, latest figures of the first half of the fiscal year 2001/2002 showed a cut down of the country's tourism receipts by 23 percent, while the Egyptian tourism receipts abroad increased by 15 percent and readymade fabric imports increased by nine million dollars over exports.

Furthermore, exports plunged by 1.6 percent and the oil sector faced a deficit reaching $ 332 million due to the increase of oil imports over exports, the figures indicated.

The balance of payments figures for the first half of the FY 2001/2002 showed a retreat in the balance of payments deficit by 51 per cent, as a result of the decline of the balance of trade deficit by 12 percent, in spite of the cut down of both imports and exports, as well as the services balance surplus by 31 percent.

However, the volume of transfers increased by 12 percent, while the capital account surplus also witnessed an increase by 130 percent.

The trade balance deficit hit $ 4.3 billion, down by 12 percent as a result of the difference between the total exports reaching $ 3.4 billion and imports hitting $ 7.7 billion.

The services balance made a surplus of two billion dollars, falling back by 31 percent.

Moreover, the official and private transfers had a surplus of $ 1.95 billion, at a growth of 12 percent against the same period of the previous year.

The transfers were divided between official and private one amounting to $ 422 million and $ 1.5 billion respectively.

The capital account enjoyed a surplus of $ 765 million, with an increase of 130 percent.

The cut down of the trade balance deficit was attributed to a decrease of total exports by 1.6 percent, mainly due to the plunge of the oil export revenues by 21 percent, in spite of the increase of the non-oil exports by 10 percent.

Among the $ 3.4 billion exports list for the first half of the FY 2001/2002 were the oil products whose share amounted to $ 584 million, while the crude oil reached $ 409 million. Iron and steel exports hit $ 190 million, cotton yarns $ 74 million, cotton textiles scored $ 49 million, rice hit $ 48 million and medicinal herbs with $ 22 million.

Against the first half of the previous fiscal year, exports of aluminum increased in the FY 2001/2002 by 228 percent, pharmaceutical products by 198 per cent, iron and steel by 154 per cent, carpets by 33 percent and medicinal herbs by 29 percent.

Meanwhile, raw cotton exports decreased by 55 percent, potatoes by 52 percent, crude oil by 20 per cent, ready-made clothes by 16 percent and cotton fabrics by 14 percent.

Imports estimated at $ 7.7 billion with crude oil in the forefront at the value of $ one billion, followed by pharmaceutical products by $ 285 million, and oil products by $ 244 million.

Wheat imports amounted to $ 213 million, maize $ 212 million, ready-made clothes $ 103 million and tobacco at $ 85 million.

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