Ahmed Kamel – Egypt Daily News
Egypt’s trade deficit surged by 23.4% in June 2025 compared to the same month last year, according to the latest data from the Central Agency for Public Mobilization and Statistics (CAPMAS). The deficit widened to $4.4 billion, up from $3.56 billion in June 2024, as the country’s import bill grew at a faster pace than export earnings.
The monthly bulletin on foreign trade indicated that Egypt’s total exports rose modestly by 4.7% year-on-year to $3.5 billion in June 2025, compared to $3.34 billion in the same month of 2024. The increase was largely driven by higher export revenues from key sectors, including:
- Petroleum products (+14.6%)
- Ready-made garments (+28.8%)
- Fresh fruits (+47.8%)
- Various food preparations and pastes (+23.7%)
However, the gains were offset by declining exports in other categories. Notable year-on-year drops included:
- Iron and steel bars, rods, angles, and wires (-11.7%)
- Fertilizers (-67.9%)
- Dry legumes (-2.0%)
- Flat-rolled iron or steel products (-22.0%)
Imports Surge Amid Demand for Fuel and Vehicles
On the import side, Egypt saw a sharp 14.4% increase in June 2025, with total imports reaching $7.90 billion, up from $6.91 billion in June 2024. The jump was attributed to higher spending on energy products and vehicles, as well as certain agricultural commodities. Key categories showing significant import growth included:
- Petroleum products (+36.4%)
- Natural gas (+53.5%)
- Passenger cars (+71.0%)
- Maize (corn) (+24.6%)
Conversely, some import categories saw a decline, helping to partially offset the overall rise. These included:
- Raw materials of iron or steel (-3.0%)
- Wheat (-6.0%)
- Primary-form plastics (-16.4%)
- Organic and inorganic chemical substances (-23.0%)
Implications and Outlook
The widening trade deficit presents ongoing challenges for Egypt’s balance of payments and foreign currency reserves, particularly at a time when the country is navigating inflationary pressures and the aftermath of recent economic reforms. While rising exports in sectors like agriculture and textiles offer a positive signal, the increasing reliance on fuel and vehicle imports suggests heightened demand that could strain the current account.
Egyptian authorities have been working to reduce the trade deficit by encouraging local production, promoting export industries, and rationalizing imports where possible. However, global commodity price fluctuations and domestic demand for energy and industrial inputs continue to play a decisive role in shaping the monthly trade figures.
As Egypt aims to stabilize its economy amid broader regional and global economic pressures, trade performance will remain a closely watched indicator in the months ahead.
