Egypt records 10.3% drop in trade deficit value

RIYADH: Fruit, clothes and carpet exports helped Egypt reduce its trade balance deficit by 10.3 percent in May as imports also dropped, according to official data.

Figures released by the north African country’s Central Agency for Public Mobilization and Statistics showed the value of goods leaving Egypt increased by 0.4 percent year on year to hit $3.81 billion in the fifth month of 2024, while incoming trade decreased by 5.1 percent to stand at $7.38 billion.   

This led to a trade deficit of $3.57 billion, with significant drops in medicines and chemicals imports helping to cut the figure.

The closing of the trade balance figures came after Egypt’s current account deficit widened significantly in the first nine months of the fiscal year 2023-2024, which ended on June 30.     

The deficit reached $17.1 billion, compared to $5.3 billion in the corresponding period of the previous year, according to the latest figures from the Central Bank of Egypt.  

The CBE attributed this change to the decline in the value of oil exports, outpacing the decrease in imports of the commodity.     

The CAPMAS statement revealed the rise in the country’s exports was driven by fresh fruits, which went  up 17.4 percent, ready-made clothes up 5.5 percent, doughs and food preparations up 32.2 percent, and carpets and kilims up 1.3 percent.

The export value of some commodities decreased in May compared to the same month a year earlier. These included a drop in crude petroleum by 4.3 percent, petroleum products by 17.4 percent, fertilizers by 5.2 percent, and plastics in their primary forms by 10.5 percent.

On the imports side, the CAPMAS data indicated that the decline was due to reduced imports of raw materials of iron or steel, which were down 0.3 percent, plastics in their primary forms by 2.9 percent, medicines and pharmaceutical preparations by 24.7 percent, as well as organic and inorganic chemicals by 23.3 percent.

Imports of other commodities increased in May compared to the corresponding month in 2023. 

These included a rise in petroleum products by 86.1 percent, wheat by 153.6 percent, and natural gas by 39.2 percent, as well as passenger cars by 15.2 percent.

Egypt is hoping to turn its economy around by bolstering exports across all sectors to diverse global markets.  

This effort emphasizes collaboration between government entities, business communities, and Egyptian exporters to enhance product quality and competitiveness.     

This also supports Egypt’s target of achieving $100 billion in annual merchandise exports in the next three years to defuse its trade deficit.