TRADE DEFICIT DECLINES Egypt s Trade and Industry Ministry Declared that the country s trade deficit for the first half of 2017 declined by 46% to USD13 billion compared to the same period last year. Imports declined by 30% (Y/Y) to USD24 billion due to imposing restrictions on imports and floating the Egyptian Pound, which increased the cost of importation. On the other hand, exports increased by 8% (Y/Y) to USD11 billion. Foreign trade improved due to the ministry s efforts to limit the import of low-quality products, ration imports and increase reliance on local production Tarek Kabil Trade And Industry Minister Reuters 3 rd August 2017 IN THIS ISSUE FDIs Are Expected To Rise Industrial Projects In The Suez Canal Zone Egypt Plans To Issue Eurobonds In 2018 External Debt Increases Egypt s Budget Deficit Declines Suez Canal Revenues Slightly Increased 1
The International Co-operation and Investment Ministry declared that Foreign Direct Investments (FDIs) are expected to rise to about USD8.7 billion in FY 2016/17, compared to about USD6.9 billion recorded in the previous year. The Ministry added that FDIs are expected to exceed USD10 billion in the current fiscal year. Petroleum Minister, Tarek EL-Molla, stated that Egypt s state-owned General Petroleum Company (EGPC) achieved an unprecedented level of production of 57,000 barrels of equivalent oil per day. This increase is attributed to the discoveries of two new fields, with a production of 3,000 barrels of crude oil per day and 1.5 million cubic feet of gas. EGPC is currently implementing a plan to reach a production rate of 60,000 barrels of equivalent oil per day by the end of this year Tarek El-Molla Petroleum Minister Ahram Online 1 st August 2017 Prime Minister, Sherif Ismail, witnessed the signing of different investment agreements to establish industrial projects in the Suez Canal Economic Zone. The projects include an agreement with businessman Ahmed Abu-Hashima to initiate a USD5.5 billion iron factory in the region. Raya Manufacturing and Logistics Company also signed an agreement to obtain 300,000 square metres of land in the south of the Economic Zone to build a coal store, a wheat mill, a pasta factory and a light-transportation assembly line. The factory, due to open in December, will produce nearly 830,000 tons of pallet iron and 550,000 tons of reinforced iron. It will provide up to 6,000 direct and indirect jobs Ahmed Abu-Hashima Egyptian Businessman Ahram Online 1 st August 2017 The Finance Minister, Amr El-Garhy, declared that Egypt plans to issue USD2-USD4 billion Eurobonds in the first quarter of 2018. Egypt sold USD7 billion bonds earlier this year, trying to diversify its sources of foreign currency. 2
The United Nations World Tourism Organization considered Egypt as the second-fastest-growing tourist destination globally, where a number of tour operators indicated a 60% increase in demand for trips to Egypt. Egypt s tourism sector has been suffering since the crash of a Russian plane over Sinai, yet there have been many signs of recovery witnessed in the last few months. The Central Egypt (CBE) stated that the country s external debt reached USD73.9 billion in March 2017, increasing by about 32.5%, compared to July 2016. The rise mainly stemmed from the net increase in loans by USD19 billion. The Finance Ministry declared that the budget deficit for the first 11 months of FY 2016/17 declined to 9.5% of GDP compared to 11.5% in the same period last year. This is mainly because the government s revenues, especially tax revenues (+33.3%), moved up in a faster pace than expenditures during that period. The chairman of the Suez Canal Authority, Mohab Mamish, declared that Suez Canal revenues slightly rose to USD2.938 billion during the first 7 months of 2017, compared to USD2.919 billion recorded in the same period last year. The US Dollar has been weakening against the Egyptian Pound since the beginning of July by 1.7%, reaching EGP17.79 on the 7 th of August compared to EGP18.09. This development comes in line with the improvement of the Net International Reserves that exceeded USD36 billion for the first time since 2011. 18.09 USD/EGP 17.79 3
EGYPT AT GLANCE EXCHANGE RATES 24 22 20 18 16 23.16 20.97 17.77 USD 17.77 17.85 9 TH JUL 17 17.88 8.85 18.18 14 12 10 EUR STERLING POUND 20.97 23.16 21.09 23.58 20.39 23.04 9.82 11.58 19.11 22.42 8 6 Aug-16 Sep-16 Oct-16 Nov-16 Dec-16 Jan-17 Feb-17 Mar-17 Apr-17 May-17 Jun-17 Jul-17 Aug-17 EGP per USD EGP per Euro EGP per Pound Sterling STOCK MARKET 16,000 14,000 13,638 EGX30 13,638 EGX70 718 13,396 704 9 TH JUL 17 13,342 681 8,273 363 7,464 358 12,000 10,000 8,000 6,000 4,000 EGX100 1,616 1,593 1,555 804 765 2,000 0 T-BILLS AUCTION AUCTION DATE 6 TH AUG 17 3 RD AUG 17 6 TH AUG 17 INTEREST RATES GLOBAL COMMODITY PRICES MATURITY (DAYS) 91 182 273 7 TH JUL 17 AVERAGE YIELD (%) 19.131 19.574 18.878 3 RD AUG 17 364 19.348 OVERNIGHT DEPOSIT RATE OVERNIGHT LENDING RATE CORRIDOR RATE *AT JULY 2017 BRENT CUDE* 52.26 GOLD** WHEAT*** 1,263.85 *USD/BARELL **USD/OUNCE SOURCE: BLOOMBERG **AT MAY 2017 CURRENT* 18.75% 19.75% 19.25% 51.78 46.71 1,268.76 1,212.46 **USD/BU PREVIOUS** 16.75% 17.75% 17.25% 45.39 1,335.31 56.82 1,158.84 465.25 461.25 535.00 417.00 465.00 CONSUMER PRICE INDEX AND MAJOR COMPONENTS HEADLINE- ALL ITEMS FOOD AND BEVERAGES TOBACCO AND RELATED PRODUCTS CLOTHING AND FOOTWEAR HOUSING, WATER, ELECTRICITY AND GAS WEIGHT IN BASKET % FURNISHINGS AND HOUSEHOLD EQUIPMENT 3.77% MEDICAL CARE TRANSPORTATION COMMUNICATIONS RECREATION AND CULTURE EDUCATION HOTELS, CAFES AND RESTAURANTS MISCELLANEOUS GOODS AND SERVICES 100% 39.92% 2.19% 5.41% 18.37% 6.33% 5.68% 3.12% 2.43% 4.63% 4.43% 3.73% JUN 2016 JUN 2017 Y/Y (INDEX) (JANUARY 2010=100) 185.16 240.27 29.76% 225.12 320.79 135.68 130.82 157.68 172.48 144.24 96.88 190.63 219.01 215.41 121.14 315.82 429.47 175.97 140.89 202.14 194.31 181.58 98.59 282.69 246.00 268.15 159.81 40.29% 33.88% 29.69% 7.70% 28.20% 12.66% 25.88% 1.77% 48.29% 12.32% 24.48% 31.92% 4
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