Morocco’s trade deficit widens to 352 billion dirhams in 2025

Morocco’s merchandise trade deficit expanded significantly in 2025, reaching approximately 352 billion dirhams ($37.5 billion), equivalent to around 21% of gross domestic product, according to figures cited in a recent report by the French Treasury Directorate published on September 10.

The deficit increased by 15.5% compared with 2024, as imports grew by 8%, while exports recorded a more modest increase of just 3%. The widening gap reflects the continued strength of domestic demand for imported goods, alongside slower growth in several export-oriented sectors.

The automotive industry remained Morocco’s largest export sector, a position it has maintained since 2014. Automotive exports were worth around 151 billion dirhams ($16.1 billion), representing approximately 11% of GDP. However, the sector experienced a 2% decline in total exports during 2025 as weaker demand in European markets weighed on Moroccan vehicle production.

Within the automotive industry, vehicle manufacturing exports fell by 14%. This decline was partly offset by an 8% increase in exports of wiring and electrical components, highlighting the growing importance of Moroccan suppliers within European automotive production networks.

Phosphates and their derivatives ranked second among Morocco’s leading export sectors, generating approximately 100 billion dirhams ($10.7 billion). Exports in this category increased by 15%, supported in particular by stronger demand from India.

Agricultural exports ranked third, reaching around 87 billion dirhams ($9.3 billion). The sector remained broadly stable compared with the previous year, despite fluctuations in international markets and domestic production conditions.

Other industrial sectors also recorded positive performances. Aerospace exports increased by 10%, while exports of metals, plastics and rubber rose by approximately 15%. The diversification of these industries is part of Morocco’s broader strategy to expand its manufacturing base and reduce reliance on a limited number of export categories.

On the import side, manufactured consumer and capital goods represented the largest category, with imports reaching nearly 400 billion dirhams ($42.6 billion), equivalent to about 23% of GDP. Passenger car imports increased by 38%, while imports of utility vehicles surged by 66%. Sulfur imports also recorded notable growth.

Lower energy imports provided some relief, partially offsetting the overall increase in Morocco’s import bill. The reduction reflects changes in energy prices and Morocco’s evolving energy mix, including greater investment in renewable energy and domestic energy infrastructure.

Europe remained Morocco’s main trading region despite the country's expanding commercial relationships with partners elsewhere. Spain was the largest destination for Moroccan exports, accounting for 21.5% of total exports, followed by France with 18.9%, Turkey with 9.7%, Germany with 5.3% and India with 5.1%.

China was Morocco’s largest source of imports, representing 13.9% of the total. Spain followed closely at 13.6%, ahead of the United States at 9.3%, France at 9% and Turkey at 5.5%.

Other important export markets included Italy, the United States, Brazil, the United Kingdom and the Netherlands. On the import side, Saudi Arabia, Germany, Italy and India were also among Morocco’s significant suppliers.

The deterioration in merchandise trade was accompanied by a widening current-account deficit. It increased from 1.2% of GDP in 2024 to 2.5% in 2025, reflecting the pressure generated by the growing trade imbalance.

However, Morocco’s services balance continued to provide substantial support to the external accounts. The country recorded a services surplus of approximately 157.7 billion dirhams ($16.8 billion), equivalent to nearly 9% of GDP, largely driven by the strong performance of tourism.

Morocco welcomed around 19.8 million international arrivals during 2025. Visitors from France accounted for approximately 14% of arrivals, followed by Spain at 9% and the United Kingdom at 6%, underscoring the importance of European markets to Morocco’s tourism industry.

Remittances from Moroccans living abroad also remained an important source of foreign currency. Transfers reached approximately 122 billion dirhams ($13 billion), equivalent to around 7% of GDP. However, their growth slowed to 2.6%, compared with an average increase of 3.6% over the previous two years.

At the same time, public current transfers declined by around 1.4 billion dirhams after Morocco benefited from exceptional official development assistance revenues in 2024.

The financial account provided a more positive signal. Excluding reserve assets, Morocco’s financial-account balance rose from approximately 5 billion dirhams in 2024 to 90 billion dirhams in 2025, equivalent to around 4.5% of GDP.

Foreign direct investment flows also increased substantially, rising from 17 billion dirhams to 31 billion dirhams ($3.3 billion). Financial and insurance activities were among the main beneficiaries, attracting around 7 billion dirhams.

France accounted for a significant share of the increase in foreign investment. French investment moved from a negative balance of around 2.2 billion dirhams in 2024 to approximately 10 billion dirhams in 2025, making it a major contributor to the rise in overall foreign investment flows.

Moroccan investment abroad continued to expand as well, particularly through the international development of banking and insurance activities. Investment flows to Côte d’Ivoire increased from around 600 million dirhams to 3.2 billion dirhams, while investment in Italy fell sharply from 3.3 billion dirhams to about 300 million dirhams.

Portfolio investment also strengthened Morocco’s financial position. Investment in debt securities moved from a negative balance of approximately 3.6 billion dirhams to a positive 33 billion dirhams ($3.5 billion). The shift included Morocco’s issuance of around €2 billion in euro-denominated Treasury bonds in March 2025.

The figures illustrate a mixed picture of Morocco’s external economy. The widening merchandise deficit highlights the country's continued dependence on imports, while the strength of services, tourism, remittances and foreign investment provides important counterweights.

Morocco’s challenge will be to continue expanding higher-value exports while strengthening domestic production and limiting excessive exposure to imported goods. The development of automotive, aerospace, phosphate, agricultural and emerging industrial sectors could play an important role in narrowing the trade gap over the longer term.