Egypt's foreign trade deficit increased by 48.8% year-on-year to $4.6 billion in March. This widening was driven by a significant jump in imports, particularly gas and petroleum products, while exports saw a decline.
The widening trade deficit signals increased pressure on Egypt's foreign currency reserves and could lead to further currency depreciation, impacting the cost of essential imports and overall economic stability.
Egypt's foreign trade deficit widened significantly by 48.8% year-on-year in March, reaching $4.6 billion. This deterioration was primarily fueled by a substantial 17.8% increase in imports, which were driven by higher purchases of natural gas, petroleum products, crude oil, and wheat. Concurrently, Egypt's exports fell by 2.5% year-on-year, with notable declines in fertilizers, potatoes, and crude oil shipments. The situation was exacerbated by Israel halting gas supplies to Egypt in March, which impacted industrial activity and the country's liquefied natural gas (LNG) exports. For the first quarter, the trade deficit expanded by 54% year-on-year as import costs surged while export revenues declined. The report also highlighted Egypt's high dependence on gas imports, noting that LNG imports jumped 81% to $8.9 billion in 2025 due to weakened domestic gas production and increased demand for electricity.