Egypt’s Trade Deficit Falls by 17%

In 2020, Egypt's trade deficit recorded $38.3 billion as opposed to $46.2 billion in 2019.
Egypt’s Trade Deficit Falls by 17%

The Egyptian Ministry of Trade and Industry announced that the deficit in the Egyptian trade balance decreased by 17% last year 2020, to record $38.3 billion as opposed to $46.2 billion in 2019.

The decrease in the trade balance deficit with the world during the past year came after merchandise imports decreased by 12% to $ 63.6 billion, while merchandise exports decreased at a slight rate that did not exceed 1% to $25.3 billion.

Nevine Gamea, the Egyptian Minister of Trade and Industry, indicated that the significant decline in imports was due to the trend towards starting to manufacture a number of inputs and production requirements locally instead of importing them, which would achieve the goals of the national program launched by the ministry to deepen local manufacturing and network manufacturing chains.

On his part, Head of the General Organization for Export and Import Control Ismail Gaber said that there are a number of export sectors that achieved significant growth during the year 2020. Those included exports of the building materials sector, which recorded $6.149 billion, a 20% increase. He also highlighted that the most important recipient country for Egyptian exports of building materials is the UAE, valued at $2.139 billion.

“Although the wheel of production has stopped in many countries of the world, the Egyptian industry was able to face this crisis. Thanks to the urgent measures taken by the government early on, especially with regard to reducing the prices of gas and electricity for the productive sectors, as well as putting forward many initiatives to pay the late dues to exporters. Which contributed to preserving the export markets and employment as well. “Nevine Gamea, Egyptian Minister of Trade and Industry

Gaber pointed out that the imports of the ready-to-wear sector decreased by 24%, recording $414 million, and handicraft imports by 21%.

Five countries accounted for 35.6% of total Egyptian exports, led by the United Arab Emirates with a value of $2.9 billion, followed by the United States with a value of $1.5 billion, Saudi Arabia with a value of $1.7 billion, Turkey with a value of $1.6 billion and Italy with a value of $1.27 billion.

As for the five countries that accounted for 41.1% of total Egyptian imports from abroad, they are China, the United States, Germany, Italy and Russia.

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