Trade gap widens

Import-Export deficit grows by ten percent y-o-y in H1 2011

August 4, 2011- The trade deficit widened to seven billion dollars in the first half of 2011, growing by ten percent from the corresponding period of 2010.

This trade deficit is the highest in five years. Figures released by the Ministry of Finance, Customs Directorate, showed that the added deficit resulted from higher imports, which rose by $648 million. The value of exports was stable. Exports in the first half of 2011 rose only by four million dollars compared to the same period a year earlier.

Total imports rose by eight percent, compared to the same period of 2010, to reach $9.2 billion. The mineral fuels and oils bill saw an equivalent percentage increase due to higher global oil prices, despite that the imported volume dropped by 13 percent year-on-year.

Exports stood at $2.1 billion for the first half of 2011. The value of the export of unwrought gold, un-mounted diamond & precious stones increased by 14 percent, due to a 44 percent increase in volume. Exports, excluding this category, dropped by five percent. Exports of “boilers, machinery and mechanical appliances” fell by 33 percent. Exports of electrical machinery and equipment dropped by 17 percent compared to the first half of 2010. However, a significant jump of 48 percent in the export of iron and steel partly offset these declines.

According to Customs figures, exports to Egypt and Syria continued to fall, dropping by 63 percent and 15 percent, respectively, compared to the first half of 2010.