Kingdom's officials in Cairo aiding Thai firms
Play
Plunge in exports to Egypt expected amid political turmoil
The political turbulence in Egypt has resulted in enormous concern among traders and investors in the North African nation, while the Thai Trade Counsellor’s office in Cairo remains in operation so that it can assist Thai businesses, the Commerce Ministry said yesterday.
Srirat Rastapana, director-general of the International Trade Promotion Department, said yesterday that the Thai Trade Representative in Cairo had reported that rising political tension in the capital and elsewhere would have a huge impact on the country’s economic growth.
In the second half of the year, Egypt’s imports could fall dramatically because the turmoil has destroyed traders’ confidence. Imports fell by 10 per cent in the first quarter, year on year.
The financial sector, exchange rate and domestic trading have all been affected, the reports from Cairo indicated.
She said the department had instructed the Thai Trade Counsellor’s office in Cairo to assist Thai enterprises as far as it was possible to do so.
However, if the situation became even more serious, officials could immediately leave the country and return to Thailand, she added.
The department estimates that the political turmoil in Egypt will not end in the short term, and that the turbulence will continue to affect the trading sector, thus hitting Thai exporters as Egyptian importers will cut their orders.
Srirat said Thai enterprises were also concerned about the financial stability and payment capability of Egyptian traders, because of the country’s economic downturn.
The department’s data show shipments from Thailand to Egypt dropped 2.7 per cent in the first half of the year, to US$459 million (Bt14.51 billion).
The political crisis in the country, which began during the “Arab Spring” in 2011, started to heat up again in June this year, leading to turmoil and widespread violence on the streets since August 14.
Since the tension has risen, the country’s reserves have crashed from $36 billion to $13.9 billion.
Although countries in the Middle East have provided some support to the country, the assistance has been of a short-term nature.
Egypt will need time for rehabilitation after the current turmoil, which is expected to be prolonged.
