Morocco has witnessed a slight reduction in its trade deficit, thanks to the impressive performance of automotive exports and a decrease in the energy bill. The trade deficit stood at 116.5 billion Moroccan dirhams, showing a marginal increase of around 1.7 percent. This comes as a relief after consecutive months of higher deficits.
In the previous year, Morocco’s overall trade deficit reached 311.6 billion Moroccan dirhams, largely influenced by the surge in import prices resulting from inflationary pressures. However, recent data from the Foreign Exchange Office indicates positive developments. By the end of May, Morocco’s exports amounted to 184.8 billion Moroccan dirhams, while imports reached 301.4 billion Moroccan dirhams during the same period.
The remarkable performance of the automotive sector has been the primary driving force behind Morocco’s exports. Since the beginning of the year, automotive exports have reached approximately 57.8 billion Moroccan dirhams, marking a significant annual increase of 39.9 percent.
As a result, the automotive sector has overtaken phosphate and its derivatives as Morocco’s top export, a position held by the latter in the previous year when global prices were at their peak.
The second-largest exporting sector during the first five months of the current year was agriculture and food processing, valued at 43 billion Moroccan dirhams. Although showing a slight increase of 0.1 percent, this sector has been impacted by drought, mirroring the challenges faced in the previous year.
Phosphate and its derivatives secured the third position with sales reaching 31.1 billion Moroccan dirhams by the end of May. However, there has been a decline of 34 percent due to reduced demand and lower prices in the first half of the current year. Expectations suggest a potential price increase in the second half.
Morocco’s efforts in bolstering automotive exports and reducing energy costs have played a significant role in narrowing the trade deficit. These positive trends indicate a positive trajectory for Morocco’s trade balance, as the country aims for sustainable economic growth and enhanced trade competitiveness.