The Clap
Egypt’s non-oil trade deficit fell by 22.6% YoY to USD 37.1 billion in 2023.
Claps Class – Trade deficit
Trade deficit occurs when the country’s imports exceed its exports, which would result in a negative balance of trade.
What
The non-oil trade deficit shrank because imports decreased by USD 11 billion. This reduction was driven by a shortage of USD, a government official told Asharq Business.
Moreover, digital exports including outsourcing increased by 26.5% YoY to reach USD 6.2 billion in the same time frame, according to a Ministry of Communications statement – which also contributed to the decrease in trade deficit.
Claps Class – Digital exports?
Digital exports are non-physical goods and services such as outsourcing customer services and selling software programs.
So What
The decrease in trade deficit would ease the pressure on foreign currency shortage, Abdelkhalek Mohammed, Equity Strategist at Thndr Securities Brokerage told Claps.
Now What
Egypt aims to increase exports by 20% annually to reach USD 145 billion in 2030.
