Egypt’s trade deficit expanded by 23.4% year-on-year (y/y) to $4.4bn in June, as import growth outpaced limited growth in exports, the Central Agency for Public Mobilisation and Statistics (CAPMAS) said in a press release on August 29. 

Egypt posted a $3.56bn trade deficit in June 2024. 

Exports recorded a modest increase of 4.7% y/y to reach $3.5bn in June this year. The growth was mainly driven by higher sales of key goods such as petroleum products, which rose by 14.6% y/y, ready-made garments (+28.8% y/y), fresh fruits (47.8% y/y) and various prepared foodstuffs (+23.7% y/y). Despite these gains, the performance was offset by declines in other categories. Exports of iron and steel bars, rods, and wires fell by 11.7% y/y, fertilisers dropped sharply by 67.9% y/y, dry legumes slipped 2% y/y, while flat-rolled iron and steel products contracted by 22%.

Imports jumped by 14.4% y/y to reach $7.9bn, fuelled by stronger demand for strategic commodities, including petroleum products, which surged by 36.4% y/y, natural gas, up 53.5% y/y, passenger cars, which soared by 71% y/y, and corn, rising 24.6% y/y. In contrast, some import categories recorded declines, including raw materials of iron and steel, down 3% y/y, wheat, down 6% y/y, primary plastics, down 16.4% y/y, and organic and inorganic chemicals, which fell by 23% y/y.

Egypt has suffered from a shortage of foreign exchange resources, and its revenues from transiting of the Suez Canal, one of the most significant sources of FX for the country, have been hit by the attacks affecting navigation in the Red Sea.

However, the country has been able to raise external financing pledges from several parties, totalling more than $58bn. Tourism income and remittances from Egyptians working abroad also increased significantly.