Egypt’s economy in Q1 FY 2024/2025 reflected mixed performance as the country navigated trade imbalances, financial reforms, investment growth, and sectoral challenges. While FDI inflows increased, the economy faced a widening trade deficit, declining Suez Canal revenues, and continued external borrowing. Despite these challenges, macroeconomic reforms, customs facilitation measures, and monetary policies indicate a long-term strategy to improve Egypt’s competitiveness and financial stability.
The non-oil trade deficit increased by $3.2 billion, reaching $9.8 billion, up from $6.6 billion in the previous year. This was primarily due to a sharp rise in non-oil merchandise import payments, which grew by $4.4 billion to $17.7 billion, compared to $13.3 billion a year earlier. Meanwhile, non-oil merchandise export proceeds increased by $1.2 billion, reaching $7.9 billion, up from $6.7 billion.
The oil trade deficit widened significantly by $2.9 billion, reaching $4.2 billion, compared to $1.3 billion. This was driven by a surge in oil imports, which increased by $2.5 billion, reaching $5.4 billion. Within this category, oil products imports rose by $1.5 billion, while natural gas imports increased by $1.2 billion. However, crude oil imports declined by $191.9 million.
On the export side, oil exports fell by $415.8 million, reaching $1.2 billion. The decline was mainly due to a $526.6 million drop in crude oil exports and a $24.2 million decrease in natural gas exports, despite a $135.0 million increase in oil products exports.
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