Egypt saw a 17.8 percent increase in its trade deficit in December 2023, mainly due to a decline in the value of vital commodities like fertilizers and petroleum products. A recent report by the Central Agency for Public Mobilization and Statistics (CAPMAS) revealed that the trade deficit in Egypt reached $3.03 billion in December 2023, a notable increase from $2.57 billion in December 2022. This increase underscores the challenges Egypt’s trade sector is facing as it navigates through economic fluctuations and global market dynamics.
Decline in export value
Egypt’s trade deficit report indicates a substantial 23 percent year-on-year decline in export value. Export value recorded $3.48 billion compared to $4.52 billion in December 2022. This decline is primarily due to the decline in the value of key commodities, including a significant 48.8 percent decline in fertilizer value, a 46.8 percent decrease in petroleum products, and an alarming 88.1 percent drop in the value of Egypt’s natural and liquefied gas exports.
Despite the overall decline in Egypt’s exports, the trade deficit report indicated that certain commodities saw a growth in export revenue in December compared to the previous year. Ready-made clothes recorded a robust 24.9 percent increase, fresh fruits rose by 3.6 percent, and crude oil experienced a substantial 60.2 percent growth.
Diminished value of imports
Egypt’s imports also witnessed a decline, albeit less pronounced, with an 8.2 percent decrease in December 2023. The trade deficit report revealed that Egypt’s imports recorded $6.51 billion compared to $7.09 billion in December 2022. The decline in import value is attributed to various factors, including the decline in the value of several commodities. Imports of organic and inorganic chemicals saw an 8.2 percent decline while plastics in their primary forms recorded a 17.2 percent decline. Meanwhile, imports of wood and its products declined by 40.5 percent.
However, certain commodities saw an increase in imports in December 2023 compared to the corresponding month in 2022. Egypt’s trade deficit report revealed a surge of 24.7 percent in imports of petroleum products while raw materials of iron or steel witnessed a significant growth of 80.2 percent.
Read: UAE-Rwanda bilateral trade hits $1.1 billion mark
Budget outlook
Despite the mounting economic challenges, Egypt has made significant strides in reducing its budget deficit. Egypt’s primary budget surplus is expected to rise above 3.5 percent in the upcoming fiscal year, beginning in July. Multiple measures support that positive outlook, including the sale of real estate and securing a support package with the International Monetary Fund.
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