Egypt Daily News – Egypt’s non-oil trade deficit has seen a significant decline of approximately 16% during the first half of 2024, reached $15.9 billion compared to $18.9 billion in the same period last year. This shift is attributed to a rise in exports and a reduction in imports, as detailed in a government report reviewed by Al-Sharq.
From January to June, Egypt’s merchandise exports increased by 9.8% to $19.641 billion, while imports fell by about 3.3%, totaling $35.565 billion. The depreciation of the currency is considered a contributing factor that enhanced the competitiveness of Egyptian goods in global markets.
The government is targeting an ambitious $100 billion in annual exports. In the previous year, Egypt’s merchandise exports were nearly static at $35.63 billion, similar to 2022 levels. The reduction in the trade deficit was mainly due to a $1.2 billion drop in imports during the first half of 2024.
To further decrease its import bill, Egypt is focusing on local market needs and production by promoting domestic manufacturers and attracting foreign investment to create industries that can produce alternatives to imported products. This initiative is part of a broader strategy to uplift the Egyptian industry, announced recently by Minister of Transport and Industry Kamel Al-Wazir, which outlines seven key objectives.
Sector-wise, the building materials sector recorded significant growth, comprising about 24% of total exports at $4.7 billion. Other notable sectors included chemical products and fertilizers at 19% ($3.8 billion), food industries at 15% ($3.1 billion), agricultural crops at 14% ($2.7 billion), and engineering and electronic goods at 13% ($2.6 billion).
Conversely, the engineering and electronic goods sector led imports, making up 30% of the total at $10.8 billion, followed by building materials at 18% ($6.8 billion), agricultural crops at 14% ($4.9 billion), chemical products and fertilizers at 14% ($5.1 billion), and food industries at 11% ($3.9 billion).
