Is Egypt’s external recovery sustainable or just financing a widening trade deficit?

• Trade deficit widens as imports outpace export growth
• Remittances, tourism and Suez Canal cushion external pressures

CAIRO, EGYPT – Egypt’s trade deficit widened sharply in the first half of fiscal year 2025/26, exposing persistent structural imbalances despite stronger inflows from remittances, tourism and the Suez Canal.

New data from the Central Bank of Egypt (CBE) show the country’s goods deficit expanded to $31.75bn between July and December 2025, up from $27.50bn in the same period a year earlier, as import growth outstripped export gains.