Moroccan Trade Deficit Shrinks: Imports Decline, Exports Hold Steady
Morocco's trade deficit witnessed a substantial reduction during the first 11 months of 2022, decreasing by 21.5 billion Moroccan dirhams (DH) compared to the same period last year, according to the country's Foreign Exchange Office.
In the midst of global economic challenges, exports demonstrated resilience, maintaining stability, while imports experienced a notable dip of 3.3%, amounting to 653.8 billion DH. This shift resulted in an enhancement of Morocco's overall trade coverage ratio the ratio of exports to imports by 1.8 percentage points, reaching 60%.
Financial analysts attribute a significant portion of the import decline to reduced purchases of energy products, witnessing a sharp 21.4% decrease to 110.97 billion DH. Additionally, there was a decrease in spending on raw materials and semi-finished goods. However, the flip side revealed an increase in imports of capital equipment and finished consumer goods, particularly in the automotive parts and accessories sector.
On the export front, Morocco experienced modest year-over-year gains, driven by the nation's critical industries such as automotive, electronics, and textile/leather. Particularly noteworthy was the remarkable surge in automotive exports, which witnessed a staggering 30% increase to 130.64 billion DH. However, the decline in international demand led to a significant downturn in phosphate and derivative exports, plummeting by -38% to 67.22 billion DH.
Despite ongoing challenges, Morocco has showcased tangible progress in promoting export-oriented industries and reducing reliance on foreign goods. Analysts commend governmental policies that support manufacturing modernization and target crucial international markets. If these strategic initiatives yield positive results, Morocco could continue making strides in reducing its substantial trade imbalance.