Morocco’s trade deficit widened by 3.2% as of August 2024 due to surging imports, according to data from the Office d’Echange (OE), the country’s foreign trade watchdog.
The trade shortfall reached MAD 196.8 billion (USD 20 billion), significantly up from MAD 190.7 billion (USD 19.5 billion) one year ago, according to the official data.
Imports surged by 4.6%, or an additional MAD 21.4 billion (USD 2.1 billion), to a total of MAD 491.9 billion (USD 50 billion) by the end of August 2024.
The uptick is largely attributed to a rising demand for capital goods, despite a slight 2.8% drop in the energy bill this year.
However, forecasts indicate that energy expenditures are expected to climb by 4.5% in 2025, potentially reaching MAD 123.9 billion (USD 12.6 billion), which could further strain the trade balance.
On the export front, growth was evident, with a 5.5% increase, bringing total exports to MAD 295 billion (USD 30 billion), up from MAD 279.6 billion (USD 28.5 billion) a year earlier.
The automotive and phosphate sectors led this growth, with automotive exports soaring to MAD 101.7 billion (USD 10.4 billion) in the first eight months of 2024, while phosphate and its derivatives are anticipated to exceed MAD 17.4 billion (USD 1.7 billion).
Despite the encouraging performance in exports, the trade deficit continues to expand as import growth outstrips export gains.
Bank Al-Maghrib, Morocco’s central bank, expects this trend to stabilize in the medium term. Following a contraction in 2023, trade activity is projected to rebound, with imports estimated to rise by 5% in 2024 and a further 9% in 2025.
Exports are also on track for growth, forecasted to increase by 4.8% in 2024 and a more robust 9.2% in 2025. While these trends may help moderate the trade deficit, a substantial imbalance is likely to persist in the near term.