Egypt recorded its lowest trade deficit in a decade during the first ten months of 2025, underscoring a marked improvement in external sector performance driven by robust export growth and moderated imports. Official data presented by Minister of Investment and Foreign Trade Hassan El-Khatib show the trade gap narrowed by 16 per cent in January–October 2025 compared with the same period last year, while total trade volume expanded by 8 per cent to $107.6bn, the highest level recorded over the past decade.
Non-oil exports rose sharply, surpassing $40.7bn and growing 19 per cent year-on-year, representing the strongest export performance in ten years and contributing significantly to the improvement in the trade balance. The increase in exports—equivalent to more than a $6.5bn uplift—was accompanied by a 2 per cent decline in imports over the same period, reflecting both demand adjustments and a shift in import composition toward production inputs and essential goods.
According to government statements, 93 percent of imports between 2023 and 2025 have consisted of production inputs and strategic commodities, a structure that supports competitiveness by reducing reliance on consumer-oriented imports and enhancing domestic value chains. Officials attributed the improved trade performance to higher investment levels, enhanced utilisation of production capacity, tax incentives that reduce production costs, and broader policy measures aimed at strengthening export-oriented sectors.
The enhanced export figures also reflect diversification into key industrial categories and markets. Alongside industrial products, processed foods and textiles have been cited as drivers of export growth, while the surge in shipments has benefitted from trade agreements with markets in the Middle East and Europe. Egypt’s improved external balance is aligned with economic policy objectives to boost export earnings, support foreign-currency inflows, elevate the manufacturing share of GDP and relieve pressure on public finances. While authorities have revised medium-term export targets—setting a goal of $115.8bn by 2030—the strong performance through October 2025 points to meaningful progress in narrowing the trade gap and strengthening the export base.
