An economist explains the reasons for the decline in the trade balance deficit by 22.5% and the decrease in the annual inflation rate to 6.2%
Ashraf Ghorab, the economic expert and vice-president of the Arab Union for Social Development in the Arab Labor System of the League of Arab States for Economic Development, confirmed that the reasons for the decline in the value of the deficit in the trade balance amounted to $2.39 billion during September 2021, an estimated decrease of 22.5%, compared to $3.08 billion. For the same month of the previous year, due to the increase in the value of exports and the opening of new markets to the Egyptian product, in addition to the substitution of some local products for the imported ones.
Ghorab explained that Egyptian exports, according to official statistics, rose last September to $3.45 billion, a rate of 36.6%, compared to $2.53 billion in the same month of the previous year, due to an increase in exports of fertilizers, ready-made clothes, pasta, food preparations, and others, in addition to a decrease in some imports such as wheat and cars. telephones and soybeans, praising the state’s efforts to reduce the trade balance deficit so that we have a trade surplus, by supporting the industrial sector to increase production and increase its exports, in addition to the government’s export support and development programs, in addition to the success of the Egyptian foreign policy and the success of the Egyptian product over competition At the international level, it contributed to increasing Egypt’s foreign trade activity.
Ghorab continued, that the state continues to increase exports to bring them to 100 billion dollars, and to provide all means of support to increase production, overcoming obstacles in front of it will undoubtedly contribute to its increase and reduce the import bill after relying on the local product by a large percentage, and this contributes to reducing the deficit in the trade balance to the lowest value He explained that the localization of important industries and production requirements to reduce the import bill, in addition to the many agreements signed by Egypt such as the African Free Trade Agreement, or Egypt’s presidency of the COMESA, in addition to seeking to complete the Cairo-Cape Town road, which passes through 9 African countries with some and others, contributes to increasing our exports to the markets. Africa and open new markets.
Ghorab pointed out that the annual inflation rate for the total of the Republic fell for the second month in a row, to record 6.2% last November, compared to 7.3% last October, to decrease in cities to 5.6% in November, compared to 6.3% in October, citing the reason for the provision of basic commodities and the presence of reserves and stocks. A large commodity is sufficient for the coming months in light of the crisis of high global food prices, in addition to pumping large quantities of commodities through government outlets and mobile cars, in addition to the success of the state’s control over commodity prices in the markets by tight control over them, to prevent traders from manipulating prices and preventing monopoly and stockpiling Commodities, in addition to citizens not rushing to stock up on commodities and reassuring them of the availability of sufficient stocks of them.
