CAIRO: While the total value of Egypt’s imports shot up by LE 34.08 billion, roughly $5.72 billion, in May alone, experts point out that a “synthetic” increase shouldn’t be taken seriously due to the devaluation of the Egyptian pound.
“Speaking in Egyptian pounds, we are fooling around,” said Alaa Ezz, secretary general of the Federation of Egyptian Chambers. “The devaluation increases the value without changing the quality so it’s a synthetic increase; our imports have actually been going doing tremendously, not only for finished goods, but raw materials.”
“You have to keep in mind that about 40 percent of our imports are food commodities and during this period you are also seeing about a 60 percent increase in food prices,” Ezz pointed out.
Indeed, a report by the Central Agency for Public Mobilization and Statistics (CAPMAS) showed that Egypt’s main imports were raw materials, basic resources such as crude oil, corn, or wheat.
Wheat imports were at an all-time high, jumping from LE 525.6 million ($88.12 million) to LE 2.2 billion ($369.1 million) seeing a total increase of 318.1 percent.
On the other hand, corn imports shot up from LE 377.4 million ($63.3 million) to LE 1.03 billion ($172.8 million) with a percentage growth of 171.9 percent.
Crude oil imports for Egypt also hiked up by 92.8 percent, going from LE 588.2 million, which is about $98.7 million to LE 1.13 billion, about $189.6 million.
Raw iron and steel also increased, reaching LE 1.63 billion ($273.5 million) from a previous LE 1.01 billion ($169 billion), an overall percentage increase of 59.8 percent.
Furthermore, organic and inorganic chemical imports hiked by 113.8 percent going from LE 429.4 million ($72 million) to LE 918.1 million ($154 million.)
The country’s plastic imports also increased from LE 463.2 million ($77.6 million) to LE 1.18 billion ($198 million,) an increase of 155.7 percent.
As Egypt has been going through an economic slump ever since the aftermath of the January 25 revolution impacted businesses, foreign direct investments, tourism, and foreign currency reserves, many in the country have had to change their spending habits.
As a result, “unnecessary” imports have seen a decline such furniture, tobacco, transportation vehicles, and electric motor components.
Furniture imports saw a 54.6 percent drop, dwindling from LE 97.7 million ($16.4 million) to LE 44.4 million ($7.45 million).
While about 10 million Egyptians smoke, tobacco imports fell drastically going from LE 141.4 million $23.72 million) worth of imports to LE 69.1 million, a 51.1 percentage drop.
Transportation vehicle imports saw a small percentage drop of about 2.3 percent, falling from LE 196.6 million ($33 million) to LE 192 million ($32.2 million.)
Moreover, electric motor imports saw a decline of 24 percent falling from LE 16.7 million to 12.7 million. Regular engines saw a drop of just .8 percent going from LE 91.1 million to LE 90.4 million.
“You import to replace what you already sold, so if you’re not selling, you don’t import,” Ezz added. “We’re not importing industrial goods a lot either because nobody is buying, when you’re in an insecure situation like we are now, people do not buy a new car, a new TV, or new investments for example.”
Ezz pointed out that even Egyptians usually buy more food during the holy month of Ramadan, this year purchases have gone down compared to last year as a result of the recent market slump after the country’s revolution.
Egypt’s total imports in January and February 2011 were worth $8,069 million. In 2010, imports were at $7,775 million. The country’s main trading partner is the US.
