WRITE SHORT NOTE. 1) TRADE IN EGYPT
Answers
The value of imports into Egypt is usually equal to about one-third and exports about one-tenth of the GDP. Since World War II exports have tended to fall short of imports. The trade deficit was particularly sizable from 1960 to 1965 as expenditure on development rose, reaching a peak in 1966. After the 1973 war with Israel, there was a decided effort to restrict imports and stimulate exports, but this met with little success. The trade deficit rose to record highs in the early and mid-1980s, largely because of the decline in revenue from petroleum exports and the increase in food imports. These problems have persisted in the early 21st century. The large visible trade deficit was partially offset by transfers from abroad, such as aid from Western governments and remittances from Egyptians working in other countries.
Nearly two-fifths of imports consist of raw materials, mineral and chemical products, and capital goods (machinery, electrical apparatuses, and transport equipment), some one-fifth are foodstuffs, and the remainder are other consumer goods. Its most important exports include petroleum and petroleum products, followed by raw cotton, cotton yarn, and textiles. Raw materials, mineral and chemical products, and capital goods are also exported. Among agricultural exports are rice, onions, garlic, and citrus fruit. Egypt’s most important trading partners include China, the United States, Italy, Germany, and the Gulf Arab countries.
The service sector—including retail sales, tourism, and government services—is one of the largest in the economy. The government alone is one of the biggest employers in the country, and government contracts help fuel other sectors of Egypt’s still heavily socialized economy. Despite privatization and fiscal austerity measures in the late 20th century, construction projects, particularly major public-works projects, have been an important source of employment and a major source of national spending. Tourism has traditionally been an important source of foreign exchange, with millions visiting Egypt each year, mostly from Europe, Asia, and other Arab countries. Warm winters, beaches, and gambling casinos draw as many tourists as do Egypt’s ancient monuments. Although the number of tourists per year and the amount they spend in Egypt rose in the 1990s and the first decade of the 21st century, security problems have at times hurt the industry. The 1997 massacre of dozens of tourists at the temple of Hatshepsut in Luxor caused visitor numbers to dip briefly. A steeper and longer-lasting drop in tourism followed the uprising that overthrew Pres. Hosni Mubarak in 2011 but began recovering rapidly in 2018.