Egypt’s Trade Deficit Widens 23.4% to $4.4 Billion

Egypt’s trade deficit expanded sharply in June, rising 23.4% year-on-year to $4.4 billion, according to official figures released Thursday. 

The gap compares with $3.56 billion recorded in the same month last year.

The deterioration came as imports jumped 14.4%, reaching $7.9 billion, fueled by higher demand for key goods. Notably, imports of natural gas surged 53.5%, while passenger car imports soared 71%, reflecting both rising consumption and Egypt’s growing energy needs.

On the other side of the ledger, exports edged up 4.7%, totaling $3.5 billion. Growth was led by higher shipments of ready-made garments (up 28.8%) and fresh fruits (up 47.8%), which partially offset weaker performance in other sectors.

The figures come as Egypt is working to rebalance its external accounts while pushing forward with structural reforms. The government is also preparing to issue its first local-currency sovereign sukuk (Islamic bonds) during the current fiscal year, a move aimed at diversifying financing sources and attracting new investors.

Analysts say the widening deficit underscores persistent challenges for the Egyptian economy, which remains heavily reliant on imports, especially for energy and consumer goods. While export growth in select sectors is encouraging, the overall pace has yet to match the surge in import demand.