That’s because the multi-billion dollar trade deficit represents international sales opportunities for exports to Egypt since the country is a net spender on a specific set of goods highlighted below.
Drilling down from its overall negative balance, Egypt performed worst in its international trade with partners from Europe incurring a -$21.3 billion shortfall. Exporters in Asia also profited at Egypt’s expense, accounting for a -$18.6 billion trade deficit at Egypt’s expense. Middle Eastern exporters also satisfied demand as shown by a -$4.1 billion Egyptian deficit.
Country-specific trade deficits indicate Egypt’s competitive disadvantages and areas which foreign businesses can and do exploit. Egypt accumulated the world’s seventh-biggest trade deficit during 2014.
Egypt’s trade deficit in 2014 grew by 66.9% since 2010 when its negative balance totaled -$26.7 billion.
International Sales Opportunities for Exports to Egypt
- Top 10
- Growth
- Detail
Top 10
The following list shows the top 10 general product categories under which Egypt racked up the severest trade deficits during 2014.
- Machinery: -US$5.5 billion (11.6% of all product deficits)
- Vehicles : -$5.1 billion (10.8%)
- Cereals: -$5 billion (10.6%)
- Iron, steel: -$3.7 billion (7.8%)
- Mineral fuels including oil: -$3.6 billion (7.7%)
- Electronic equipment: -$2.7 billion (5.8%)
- Articles of iron or steel: -$2.2 billion (4.6%)
- Wood: -$1.8 billion (3.8%)
- Plastics, plastic articles: -$1.7 billion (3.5%)
- Meat: -$1.6 billion (3.4%)
The above top 10 product categories represent 67% of Egypt’s overall product-category deficit subtotal which amounted to -$49.3 billion. For that subtotal, 69 of Egypt’s 97 general product categories incurred deficits in 2014 while the remaining 28 categories delivered surplus amounts.
Growth
Detail
Major Product Demand by Egypt’s Supplying Countries
- Top 10
- Growth
- China
- Germany
- US
Top 10
The following list presents trade partners with which Egypt racked up the highest trade deficits in 2014.
- China: -US$7.7 billion (15.3% of Egyptian country-specific deficits)
- Germany: -$4.9 billion (9.6%)
- United States: -$4.1 billion (8.1%)
- Ukraine: -$3 billion (5.9%)
- Kuwait: -$2.9 billion (5.8%)
- Russia: -$2.6 billion (5.1%)
- Brazil: -$2 billion (4%)
- South Korea: -$2 billion (3.9%)
- Turkey: -$1.4 billion (2.8%)
- France: -$1.3 billion (2.6%)
The above 10 trade partners represent 63.1% of Egypt’s subtotal deficit of -$50.5 billion from the 107 geographic entities with which Egypt demonstrated strong import demand. That subtotal excludes the 95 geographic entities with which Egypt earned trade surpluses.
Growth
China
Germany
US
See also Top African Export Countries, Top Middle Eastern Export Countries, Saudi Arabia’s Top 10 Imports and Nigeria’s Top 10 Imports
Research Sources:
The World Factbook, Country Profiles, Central Intelligence Agency. Accessed on December 23, 2015
Trade Map, International Trade Centre. Accessed on December 23, 2015
Investopedia, Net Exports Definition. Accessed on December 23, 2015