Morocco's trade deficit swells to MAD 71 billion in early 2025

Friday 02 May 2025 - 09:20

By: Dakir Madiha

Morocco's trade deficit swells to MAD 71 billion in early 2025

Morocco's trade deficit has surged dramatically in the first quarter of 2025, reaching MAD 71.63 billion ($7.1 billion), marking a 16.9% increase compared to the same period last year. This troubling statistic, released by the Office des Changes, underscores a significant imbalance in the country's trade, driven by a rise in imports that has far outpaced the modest growth in exports.

Imports totaled MAD 187.7 billion ($18.6 billion), reflecting a 6.9% increase, while exports saw only a slight uptick, climbing to MAD 116.07 billion ($11.5 billion), an increase of just 1.5%. Consequently, the trade coverage ratio has declined to 61.8%, down more than three percentage points from the previous year.

The report attributes this increased import bill to a broad-based rise across all product categories. Notably, spending on raw materials surged by 27.6%, totaling MAD 9.36 billion ($925 million). Food imports also rose, reaching MAD 23.94 billion ($2.37 billion), representing a 9.4% increase. Additionally, consumer goods and capital equipment saw significant gains, amounting to MAD 43.59 billion ($4.3 billion) and MAD 43.04 billion ($4.26 billion), respectively.

Despite global market fluctuations, energy imports inched up to MAD 28.22 billion ($2.79 billion), further complicating the trade landscape.

On the export front, a few sectors demonstrated resilience. Phosphates and their derivatives generated MAD 20.3 billion ($2 billion), an impressive increase of 18.2%. The mining sector outside of phosphates also contributed positively, with exports totaling MAD 1.38 billion ($137 million). The aeronautics sector continued its upward trajectory, reaching MAD 7.03 billion ($695 million), while agri-food exports remained stable at MAD 26.74 billion ($2.64 billion).

However, the overall picture is not uniformly positive. Several key sectors that traditionally bolster Morocco's export profile reported declines. Electronics and electrical goods slipped to MAD 4.21 billion ($417 million), down 11.6%. Automotive exports fell by 7.8% to MAD 37.36 billion ($3.7 billion), and textiles and leather exports decreased by 1.4% to MAD 11.51 billion ($1.14 billion).

These statistics indicate that Morocco's trade imbalance is less a result of an unexpected surge in imports and more a reflection of sluggish export growth. Despite robust global demand for sectors like phosphates and aviation, traditional pillars such as automotive and textiles are exhibiting signs of weakening performance.