Egypt’s trade deficit witnessed a notable decline of 37.20 percent year-on-year in January 2024, dropping to $2.08 billion compared to $3.32 billion in January 2023. This substantial reduction in the trade deficit is mainly due to the significant decline in imports, according to data released by the Central Agency for Public Mobilization and Statistics (CAPMAS).
Import trends
In January 2024, imports experienced a sharp decline of 25.30 percent year-on-year, totaling $5.54 billion compared to $7.42 billion in January of the preceding year. This decline in imports is the main factor behind the decline in Egypt’s trade deficit.
The decline in imports was particularly notable in key categories including wheat, which saw a 41.80 percent annual decline. Moreover, plastics in primary forms saw a 43.60 percent decrease in imports. Meanwhile, medicines and pharmaceutical preparations saw a 9.90 percent decline.
However, imports of petroleum products saw a surge of 60.80 percent. Moreover, imports of natural gas saw a 20.90 percent increase. Meanwhile, imports of passenger cars saw a staggering 92.9 percent annual increase in January 2024.
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Export trends
Egypt’s exports also experienced a downturn in January 2024, declining by 15.60 percent year-on-year to $3.46 billion from $4.10 billion in January 2023. However, some sectors witnessed a surge in exports which supported the decline in Egypt’s trade deficit.
Notably, exports of liquefied natural gas (LNG) saw a substantial drop of 87.10 percent, while exports of fertilizers contracted by 47.70 percent. Exports of crude oil also saw a 22.10 percent decline while petroleum product exports declined by 8.10 percent.
Conversely, exports of pastries and various food preparations observed notable increases of 38.60 percent. Exports of ready-made clothes also saw a 35.70 percent increase. Meanwhile, exports of fresh fruits witnessed a 24.90 percent increase.
The significant reduction in Egypt’s trade deficit in January 2024 reflects shifting import and export dynamics. While declines in imports contributed to narrowing the deficit, challenges in export sectors such as LNG and petroleum products underscore the need for diversification and resilience in Egypt’s trade strategy.
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