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Egypt’s Food Exports Rise by 13%

Egypt’s Food Exports Rise by 13%

Tuesday, 27 July, 2021 - 08:45
Egyptian fruit vendors arrange fruit at a stall in a market in the capital Cairo on October 9, 2015. (AFP)

Egypt’s food exports grew by 13 percent year-on-year to $2.052 billion in the first half of 2021, compared to $1.820 billion in H1 of 2020, according to data released by the Food Export Council on Monday.

Arab countries topped Egypt’s food export market destinations with 55 percent, followed by the European Union with 31 percent.

Egypt registered a primary surplus of 93.1 billion Egyptian pounds ($5.926 billion), or around 1.4 percent of its gross domestic product (GDP,) in the financial year that ended in June, the presidency said in a statement on Sunday.

The government had been targeting an overall budget deficit of 7.8 percent and a primary surplus of 0.9 percent of GDP.

Egypt also registered a budget deficit of 7.4 percent in FY 2020-2021, down from 8 percent a year prior, the statement added.

The country saw its debt-to-GDP ratio drop to 90.6 percent in the 2020-2021 financial year from 108 percent in 2016-2017.

Growth is expected to reach 2.8 percent in FY2020/21 and rebound strongly to 5.2 percent in FY2021/22, according to the International Monetary Fund (IMF). It also expects Egypt’s GDP to rebound slightly in FY2022/23 to reach 5.6 percent.

The IMF projects inflation to average 6.6 percent in FY2021/22 and to go up to 6.9 percent in FY2022/23.

Egypt’s annual consumer price inflation declined to 5.3 percent in June 2021, compared to 6 percent in May 2020, the Central Agency for Public Mobilization and Statistics (CAPMAS) said.

Last month, the IMF praised the policies adopted by the Central Bank of Egypt.

The Executive Board of the IMF completed the second and final review of Egypt’s economic reform program supported by a 12-month Stand-By Arrangement (SBA), allowing the authorities to draw about $1.7 billion.

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