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Economy

Morocco's Trade Imbalance Grows: Exports Rise, but Imports Surge Faster

Wednesday 02 - 12:20

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Morocco's trade deficit expanded to 196.85 billion dirhams ($19.3 billion) by the end of August 2024, marking a 3.2% increase from the previous year. This widening gap between imports and exports highlights the ongoing challenges faced by the North African nation in balancing its international trade.

The country's Exchange Office reported that imports grew by 4.6%, reaching 491.95 billion dirhams ($48.2 billion). Exports also increased, rising by 5.5% to 295.09 billion dirhams ($28.9 billion). Despite the deficit increase, there was a slight improvement in the coverage rate - the ratio of exports to imports - which edged up by 0.6 percentage points to 60%.

The surge in imports was primarily driven by finished capital goods, which saw a 10.9% jump to 113.99 billion dirhams ($11.1 billion). Semi-finished products and consumer goods also contributed significantly to the import growth, with increases of 8.1% and 4.3% respectively. Food product imports saw a modest 1.7% rise, totaling 61.14 billion dirhams ($6 billion). However, raw materials and energy products experienced declines of 4.7% and 2.8% respectively.

On the export front, Morocco's aeronautics sector led the charge with an impressive 21.2% increase, reaching 17.42 billion dirhams ($1.7 billion). The phosphates and derivatives sector also performed strongly, growing by 11.7% to 53.50 billion dirhams ($5.2 billion). Automobile exports continued their upward trajectory, rising 7.6% to 101.71 billion dirhams ($10 billion). However, the textiles and leather sector faced headwinds, with exports dipping slightly by 0.7% to 31.78 billion dirhams ($3.1 billion).

These latest figures come after Morocco had shown some improvement in its trade balance in 2023, when the deficit shrank by 7.3%. That reduction was attributed to lower energy imports and stronger revenues from tourism and remittances. However, the current data suggests that the country is once again facing increased pressure on its trade deficit.

The widening trade imbalance underscores the complex challenges Morocco faces in navigating the global economic landscape. While the country has seen growth in key export sectors such as aeronautics and automobiles, the faster pace of import growth continues to outstrip export gains. This trend highlights the need for continued efforts to boost export competitiveness and manage import dependencies to achieve a more balanced trade position in the future.