Ahmed Kamel _ Egypt Daily New
Egypt’s trade deficit widened sharply in March 2026 as rising imports of energy products and strategic commodities significantly outpaced export earnings, highlighting the continuing pressure facing the country’s external trade balance despite gains in several key export sectors.
According to data released Wednesday by the Central Agency for Public Mobilization and Statistics (CAPMAS), the trade deficit climbed to $4.6 billion during March, an increase of 48.8 percent compared with $3.1 billion recorded in the same month last year. The deterioration came as import growth accelerated while exports posted a modest decline, creating one of the largest monthly trade gaps recorded in recent months.
The figures underscore the challenge facing Egypt’s economy as authorities seek to boost exports, attract foreign investment and strengthen hard-currency inflows while meeting growing domestic demand for energy, food and industrial inputs.
Egyptian exports fell 2.5 percent year-on-year to $4.6 billion in March, compared with $4.8 billion during the corresponding month of 2025. The decline was driven by weaker performance in several traditional export categories, particularly fertilizers, which dropped by 23.3 percent, as well as potatoes, which fell by 31.9 percent. Exports of crude oil also declined by 23.1 percent, while exports of food preparations and processed food products registered a 10.1 percent decrease.
Despite the overall decline, several export sectors delivered stronger results. Petroleum product exports surged by 68.4 percent, reflecting increased refining activity and stronger external demand. Fresh fruit exports also posted a robust 30.3 percent increase, while ready-made garments rose 4.7 percent and primary plastic products increased by 6.9 percent. The gains helped offset part of the decline in other major export categories but were not sufficient to prevent an overall contraction in export revenues.
The more significant shift occurred on the import side of the ledger. Egypt’s imports jumped 17.8 percent to $9.3 billion in March, up from $7.9 billion a year earlier. The increase was largely fueled by higher purchases of energy products and food commodities, reflecting both domestic consumption requirements and broader market conditions.
Crude oil imports recorded the sharpest increase, rising by 90.4 percent compared with the same month last year. Wheat imports also expanded significantly, climbing 41.9 percent as Egypt continued to secure supplies for one of the world’s largest food subsidy programs. Imports of petroleum products increased by 16.7 percent, while natural gas imports rose by 16.6 percent.
The data suggest that energy remains a major factor behind Egypt’s import bill. Growing domestic demand and efforts to secure fuel supplies have increased reliance on imported energy products, adding pressure to the country’s trade balance despite ongoing investments in energy production and infrastructure.
Not all import categories moved higher. CAPMAS reported declines in several industrial and manufacturing-related imports, including raw materials of iron and steel, which fell by 31.5 percent. Imports of organic and inorganic chemicals declined by 21.1 percent, while pharmaceutical imports dropped by 24.5 percent. Corn imports also registered a modest decline of 6.3 percent.
Economists often view the trade balance as a key indicator of external-sector health because it reflects the relationship between domestic production, export competitiveness and import demand. The latest figures indicate that Egypt continues to face the challenge of narrowing its trade gap while maintaining supplies of essential commodities and supporting economic growth.
The March data also reinforce the importance of export diversification efforts currently being pursued by the government. While sectors such as petroleum products, garments and agricultural exports recorded growth, Egypt remains vulnerable to fluctuations in global commodity markets and changes in demand for several of its traditional exports.
With imports growing at a much faster pace than exports, reducing the trade deficit is likely to remain one of the central economic challenges facing policymakers in the months ahead, particularly as the country works to strengthen foreign-currency earnings and improve overall external balances.
