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Morocco’s Trade and Services Show Positive Growth Despite Increased Deficit

Morocco’s Trade and Services Show Positive Growth Despite Increased Deficit
Monday 02 December 2024 - 12:45 By: Dakir Madiha
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Morocco's export sectors have experienced notable growth, positioning the country as a rising force in global trade, especially in services. As of October, Morocco's trade exports reached MAD 373.54 billion ($37.4 billion), reflecting a 6.2% increase compared to MAD 351.66 billion ($35.21 billion) the previous year, according to the latest data from the country's Exchange Office.

The growth is largely attributed to a rise in imports across several key industries, including the automotive sector, phosphates and their derivatives, aerospace, agriculture, and electronics. Specifically, aeronautical exports surged by 17.3%, phosphates and derivatives grew by 12.5%, and automotive exports saw an 8% increase.

In terms of goods imports, Morocco also witnessed a 5.8% increase, bringing the total to MAD 623.37 billion ($62.42 billion). These goods include finished equipment products, consumer goods, semi-finished products, and food products.

The services sector also saw a positive uptick, with service exports increasing by 7.3%. However, the services surplus dropped by 1.2%, totaling MAD 111.26 billion ($11.14 billion). Foreign direct investment (FDI) showed a significant improvement, rising by 61.6% to reach MAD 19.5 billion ($1.95 billion).

Tourism also contributed to the positive trend, with travel revenues climbing 9.3% to reach MAD 96.92 billion ($9.7 billion). Conversely, travel expenditures rose by 20%, totaling MAD 24.68 billion ($2.47 billion).

Despite the growth in exports, Morocco’s trade deficit expanded by 5.2%, reaching MAD 249.83 billion ($25.01 billion) compared to the previous year. Additionally, remittances from Moroccans living abroad reached MAD 100.29 billion ($10 billion) by the end of October, highlighting the vital role of the Moroccan diaspora in the country's economy.

Though the trade deficit has widened, the overall outlook remains positive. Morocco's export sectors are poised for even greater success in the years ahead, buoyed by strong growth in key industries and an expanding services sector.

This growth signals Morocco’s increasing role as a central player in global trade, particularly within Africa, as it continues to invest in and strengthen its export capabilities.

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