Ahmed Kamel – Egypt Daily News
Egypt’s trade with global markets increased sharply during the first seven months of 2026, driven primarily by a surge in imports. The value of total trade reached approximately $104.9 billion between January and July, compared with $87.3 billion during the same period in 2025.
The increase amounted to about $17.6 billion, representing growth of 20.2%, according to figures attributed to Egypt’s Central Agency for Public Mobilization and Statistics.
The data show that the expansion was not evenly distributed between the two sides of Egypt’s foreign trade. Exports rose, but imports grew at a considerably faster pace. That difference resulted in a wider merchandise trade deficit during the period.
Egyptian exports generated approximately $31.9 billion in the first seven months of the year, up from $29.9 billion in the corresponding period of 2025. The increase was about $2 billion, equivalent to annual growth of 6.8%.
Imports, by contrast, reached roughly $73 billion, compared with $57.4 billion a year earlier. The import bill therefore increased by about $15.6 billion, or 27.3%.
The figures imply a trade deficit of approximately $41.1 billion for the January-to-July period. In the same period of 2025, the deficit was about $27.5 billion. On that basis, the gap between exports and imports widened by around $13.6 billion year on year.
The figures also show that imports accounted for nearly 70% of Egypt’s total trade during the seven-month period. Exports represented about 30%. The imbalance underlines the country’s continued dependence on imported goods, industrial inputs and energy-related commodities.
The growth in imports may reflect several factors, including stronger domestic demand, the release of goods held up by foreign-currency shortages, and increased purchases of raw materials and capital equipment. Imports can rise when factories expand production because manufacturers often require machinery, fuel, intermediate goods and components from abroad.
A higher import bill does not necessarily indicate that all imported goods are being consumed by households. Some imports are used by Egyptian manufacturers to produce goods for the domestic market or for re-export. The effect on the trade balance depends on whether these purchases eventually support higher production and export earnings.
The July figures reinforced the broader trend. Total trade during the month reached approximately $15.9 billion, compared with $12.7 billion in July 2025. The monthly increase was about $3.2 billion, equal to 25.1%.
Exports in July stood at approximately $3.9 billion, compared with $3.7 billion in the same month a year earlier. The increase of about $200 million represented growth of 5%.
Imports rose much more rapidly. Their value reached roughly $12 billion in July, compared with $9 billion in July 2025. The increase was about $3 billion, equivalent to annual growth of 33.5%.
The July figures produced an estimated monthly trade deficit of $8.1 billion. That compared with a deficit of approximately $5.3 billion in July 2025, meaning the monthly gap increased by about $2.8 billion.
The difference between export and import growth is significant for Egypt because the country needs foreign currency to pay for imports. Export receipts are one source of foreign currency, alongside tourism income, remittances, foreign investment, Suez Canal revenues and external borrowing.
When imports rise faster than exports, demand for foreign currency can increase. If export earnings and other sources of foreign exchange do not grow at the same pace, pressure can build on the country’s balance of payments and currency market.
Egypt has been attempting to increase exports by expanding industrial production, supporting export-oriented companies and attracting investment into sectors such as textiles, food processing, chemicals, petroleum products and electronics. The government has also promoted the Suez Canal Economic Zone as a location for manufacturing facilities serving both the Egyptian market and overseas customers.
Recent monthly trade data have shown growth in several export categories, including ready-made garments, fresh produce, processed food and petroleum products. Export performance, however, has varied from month to month, with fertilizers, some metal products and other commodities recording declines during certain periods.
The latest seven-month figures suggest that Egypt’s export sector is growing, but not yet quickly enough to offset the increase in imports. For the trade deficit to narrow, export growth would need to accelerate, import growth would need to slow, or both developments would need to occur at the same time.
The composition of future imports will also be important. Purchases of machinery, equipment and production inputs could support investment and improve Egypt’s future export capacity. A sustained rise in consumer and energy imports, without a corresponding increase in production, would place greater pressure on foreign-currency resources.
The January-to-July results therefore present a mixed picture. Egypt’s international trade has expanded substantially, and exports have reached a higher level than a year earlier. However, imports have grown four times faster in percentage terms, leaving the country with a significantly larger trade deficit.
