Arab Finance: Egypt recorded its sharpest decline in the trade deficit and its strongest growth in non-oil exports in a decade during the first ten months of 2025, as per a statement.

Reviewing the evolution of Egypt’s trade balance from January to October 2025 compared with the same periods over the past ten years, Minister of Investment and Foreign Trade Hassan El-Khatib said the trade deficit fell to its lowest level in ten years, declining by 16% compared with the same period in 2024.

Over the same period, non-oil exports reached about $40.7 billion, marking a 19% increase year on year and representing the highest level achieved in a decade.

He added that exports recorded their largest annual increase in ten years, rising by more than $6.5 billion, also up 19% compared with the same period last year.

Total trade volume reached $107.6 billion between January and October 2025, the highest level in a decade, reflecting an 8% increase year on year.

The improvement was driven by a 19% rise in exports alongside a 2% decline in imports compared with the first ten months of 2024.

Addressing the structure of imports, El-Khatib said that based on a three-year average covering 2023, 2024, and 2025, around 93% of imports consist of production inputs and strategic and essential goods, underscoring what he described as a production-oriented import pattern that supports competitiveness.

He noted that customs incentives help reduce production costs and strengthen the competitiveness of Egyptian products in global markets, adding that trade liberalization aligns with the state’s objectives of boosting exports and attracting investment.

The minister said increased investment and more efficient use of production capacities are the main drivers behind export growth and rising trade activity, with a direct positive impact on narrowing the trade deficit.

In this context, he reviewed the historical development of Egypt’s trade balance between 2004 and 2024, noting that average exports stood at around $5.97 billion between 2004 and 2007 before surging in 2008, when exports grew by 91% following increased investment and better utilization of production capacities, contributing to higher exports and a lower trade deficit.

El-Khatib also outlined Egypt’s network of trade agreements, saying the country has free trade agreements with more than 100 countries worldwide.

He reviewed the trade balances with these partners and highlighted untapped opportunities for expanding exports, adding that such agreements have delivered a dual benefit to the economy through higher exports and job creation, alongside a continued decline in the cost of exemptions.

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