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- Factors that contributed to Egypt’s decline in trade deficit were increase in exports of commodities like readymade garments and decline in imports of raw materials like iron and steel and passenger cars
Egypt’s trade deficit declined 21.6 percent during December 2021. The decline in the trade deficit was to the extent of US $2.41 billion, compared to $3.08 billion in the same month of 2020. This was stated by the state’s statistics agency (CAPMAS). Exports increased by 45.3 percent, recording US$4.32 billion in December 2021, compared to US$2.97 billion during the same month of 2020.
The reasons for increase in exports were mainly rise in the exports of various commodities, such as: ready-made garments by 33%, plastics (in their primary forms) by 28.4%, flat-rolled products of iron or steel by 22.1%, pasta and miscellaneous food preparations by 18.6%.
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Export items, which registered decline included fresh fruits by 0.9%, fertilizers by 25.1%, furniture by 7.6%, and fresh orange by 55%.
The data indicated an increase of 11.3 percent in imports to reach US $6.73 billion in December of 2021, compared to US$6.05 billion in the same month of 2020. A number of factors led to an increase in imports, such as higher imports of petroleum products (71.2%), raw materials of iron or steel ( 93.9%), passenger cars by 50.8%, and plastics in their primary forms by 70%. In value terms also imports of certain commodities have gone up, such as petroleum products by 78.6%, copper and its products by 60.3%, medicines and pharmaceutical preparations by 37.9%, and plastics in their primary forms by 35%. Lesser imports were noticed for commodities like
wheat (7.8%), corn (8.6%, crude oil (63.8%), and wood and its products (11.3%).
