Egypt's trade deficit narrows by 17.4 pct: government source

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Wednesday - 1 February 2017

CAIRO (Reuters) - Egypt's trade deficit narrowed by 17.4 percent in 2016, following a rise in exports and a decline in imports, a government official told Reuters on Wednesday.

Import-dependent Egypt's economy is struggling to recover after a mass uprising in 2011 that drove away tourists and foreign investors and created a shortage of foreign currency that has sapped its ability to purchase from abroad and revive key industries.

Egypt's exports rose to $20.285 billion in 2016 from $18.670 billion a year earlier, while imports have been reduced to $62.925 billion from $70.277 billion in 2015, said the official who spoke on condition of anonymity because he is not authorized to speak to the media.

"Trade deficit reached $42.640 billion from $51.606 billion in 2015," the official added.

The central bank had been keeping the pound artificially strong at 8.8 per dollar and had been rationing its reserves, prioritizing the imports of essential goods. On Nov. 3 it floated the pound in a sudden move and raised interest rates.

(Reporting byEhab Farouk; Writing by Amina Ismail)