Egypt’s trade deficit narrowed 0.3% year-on-year to $3.99 billion in May 2026, marking its first annual decline since September 2025, according to data from the Central Agency for Public Mobilization and Statistics (CAPMAS).

The deficit stood at $4 billion in May 2025, with export growth outpacing the increase in imports during the month.

Exports rose 3.58% year-on-year to $4.53 billion, from $4.37 billion a year earlier. Growth was led by fresh fruits, which jumped 40.3%, while crude oil exports increased 56.4%. Exports of plastics in primary forms and fertilizers rose 29.1% and 9.4%, respectively.

Several export categories recorded declines. Shipments of iron bars, rods, angles and wires fell 50.2%, while food pastes and preparations dropped 12.6%. Carpet and kilim exports declined 12.4%, and ready-made garments fell 10.4%.

Imports increased 1.72% to $8.52 billion in May, from $8.37 billion a year earlier. The increase was driven in part by a 96.8% surge in natural gas imports. Wheat imports rose 33.0%, while petroleum product imports increased 18.0%. Imports of iron and steel raw materials edged up 3.3%.

Meanwhile, pharmaceutical imports fell 39%, while imports of organic and inorganic chemicals declined 24.9%. Imports of plastics in primary forms dropped 15.6%, and corn imports decreased 4%.

The May reading follows a sharp widening in Egypt’s trade deficit earlier this year. The deficit increased 48.8% year-on-year in March before moderating to a 20.2% rise in April, reflecting higher import costs and increased energy-related purchases.

The latest data come as Egypt implements its National Industrial Strategy 2026–2030, which targets $100 billion in non-oil exports by 2030. The strategy focuses on sectors including ready-made garments, textiles, food processing, pharmaceuticals, automotive manufacturing, and electrical, engineering and electronics industries, with the aim of strengthening Egypt’s integration into global value chains.

Egypt last recorded an annual decline in its trade deficit in September 2025, when the gap contracted 27.6% to $3.3 billion. May’s reversal could signal some easing in external trade pressures, although the sharp rise in energy imports continues to weigh on the country’s import bill.