June 5, 2011- Lebanon’s trade deficit widened during the first quarter of 2011, in light of an overall drop in the value of exports facing an increase in imports compared to the same period last year, according to figures released by the Customs.

The trade balance saw a deficit of $4.75billion during the first four months this year, up by 7.8 percent from the same period in 2010.

In nominal terms, the cumulative value of exports in the first four months of 2011 slid by only two percent y-o-y to $1.35billion. The decline would have been steeper, considering the first quarter figures. However the value of exports recorded a substantial rebound in April, rising by six percent from March 2011 to $375million, due to a 23 percent expansion in chemical exports, as well as an 18 percent surge in the value of pearls and precious stones.

Conversely, imports also expanded at a faster annual pace, rising around five percent to $6.08 billion up until April.

The sustained rise in the value of imports is due to a price effect as the volume is on a declining trend. The rise was boosted by a 14 percent jump in consumer products to $1.04billion, followed by upsurges of 13percent and 9.5percent in chemicals and mineral products (oil derivatives) to $617million and $1.3billion respectively.