Egypt’s Trade Deficit Plunges 23.4% Year-on-Year

Egypt’s trade deficit narrowed sharply in September 2025, falling 23.41% year-on-year to $3.27 billion, according to fresh data released Wednesday by the Ministry of Planning and Economic Development, drawing on calculations from the Central Agency for Public Mobilization and Statistics (CAPMAS). 

The figure marks a significant improvement from the $4.27 billion deficit recorded in September 2024.

The sharp adjustment was driven primarily by a remarkable jump in exports. Egypt’s total exports surged 37.6% to $4.93 billion, up from $3.59 billion in the same month last year. Imports, meanwhile, grew at a much slower pace, rising 4.33% to $8.20 billion compared with $7.86 billion in September 2024.

On a month-to-month basis, the improvement was even more pronounced. The trade deficit plunged 44.66% from $4.73 billion in August 2025 to $3.27 billion in September.

Exports rose 24.57% from $3.96 billion in August, a sign of strengthening foreign demand for Egyptian goods, particularly in non-oil sectors. Imports contracted 5.61%, dropping from $8.69 billion in August to $8.20 billion in September, reflecting a combination of tighter import controls, lower commodity prices, and easing demand pressures.

The monthly and annual gains align with a broader fiscal improvement seen during the 2024–2025 financial year, when Egypt’s trade deficit fell 25.9% to approximately $15.4 billion, down from the previous year.

Non-oil exports were a major contributor. In 2024, Egyptian non-petroleum exports grew 15% to $40.96 billion, according to figures from the General Organization for Export and Import Control (GOEIC), cited by the Egyptian Exporters Association. Imports grew only 5% to $78.51 billion, signaling a gradual rebalancing of Egypt’s external accounts despite ongoing economic challenges.

Economists say the sustained narrowing of the trade gap could help ease pressure on the Egyptian pound ahead of 2026, when markets expect renewed volatility linked to financing needs and global interest-rate shifts. A recent CNN Business poll suggested divided expectations over the pound’s ability to maintain stability next year, reflecting the delicate nature of Egypt’s economic recovery.

For now, the latest data offers a rare bright spot: a meaningful improvement in Egypt’s trade performance driven by expanding exports and cooling import demand, an encouraging sign for policymakers attempting to restore external stability.