Egypt trade deficit shrinks by approximately 18% in May - Economy
CAPMAS attributed this improvement to a moderate rise in exports and a simultaneous decline in imports, reflecting a shift in Egypt's external trade dynamics.
The value of Egyptian exports rose to $4.25 billion in May, up from $4.1 billion in May 2024, a 4.6 percent increase YoY.
The rise in exports was driven by the notable growth in key sectors, including a 53.5 percent hike in petroleum product exports, a 32.8 percent increase in ready-made garments, and a 21.7 percent uptick in pasta and other food preparations.
However, exports of fresh fruits declined by four percent, fertilizers plummeted by 48 percent, and crude oil dropped by 48.3 percent YoY.
Meanwhile, imports shrank to $7.7 billion in May, down from $8.21 billion in May 2024, a 6.7 percent decrease.
The decline was driven by a significant reduction in the imports of petroleum products, which fell by 20.3 percent.
Imports of iron and steel raw materials dropped by 34 percent, while those of primary plastic forms and iron and steel chemical products declined by 15.9 percent and 18.9 percent, respectively.
Despite the overall decline, some import categories recorded sharp increases. Natural gas imports surged by 93 percent YoY, driven by rising domestic demand amid high summer energy consumption.
Imports of pharmaceutical products rose by 19.1 percent, while those of passenger cars climbed by 14.5 percent compared to 2024.
Egypt is working to enhance its trade balance by encouraging domestic production, expanding export markets, and rationalizing non-essential imports.
The recent improvement in the trade deficit aligns with broader government efforts to reduce pressure on foreign currency reserves and support macroeconomic stability through a plan that aims to raise the country's exports to $115.8 billion annually by 2030.
Egyptian exports hit over $40 billion in 2024, according to the Ministry of External Trade.
CAPMAS is expected to release cumulative trade data for the first half of 2025 later this quarter.
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