Recent reports reveal that the gap between Egypt’s foreign currency reserves and spending dropped dramatically over the past three years.
A recent meeting confirmed that this deficit stood at between $115 to $150 million last month, whereas it was as high as $3 billion just three years ago, according to Al-Musawwar weekly.
Reasons for the fall include the restructuring of Egypt’s economic bodies and an overall slowdown of the national economy, stated Yusuf Butrous Ghali, Egypt’s Minister of Economy.
In addition, a decrease in imports, along with a 20 percent increase in exports, reduced the commodities and service balance from $1.3 billion last year to $115 million this past March.
Ghali also stated that the 17 percent rise in non-oil commodities exports was a crucial part of Egypt’s economic growth and reduction of such deficits. Oil exports grew by some 24 percent during the same period.
Moreover, one of the most promising export markets is Egypt’s automobile industry, whose export values are expected to reach nearly $250 million this fiscal year.
On a less positive note, income of expatriate Egyptians working abroad dropped by nearly $800 million from last year. Therefore, according to Ghali, a continued effort is needed to further reduce the deficit. –(MENA Report)
© 2001 Mena Report (www.menareport.com)
