Morocco trade deficit widens to 13.7 billion despite export growth

Tuesday 02 - 09:19

By: Dakir Madiha

Morocco trade deficit widens to 13.7 billion despite export growth

Morocco’s trade deficit widened sharply during the first four months of 2026, reaching MAD 127.04 billion, or about $13.7 billion, according to official foreign trade figures. The increase marks an 18.4 percent rise compared with the same period in the previous year. The gap reflects a faster expansion in imports than in exports, despite continued growth in key industrial sectors.

Imports reached MAD 295.9 billion between January and April, up 12.7 percent year on year. Exports increased at a slower pace of 8.7 percent, totaling MAD 168.86 billion. This divergence reduced the export coverage ratio to 57.1 percent, down by two percentage points, signaling a growing imbalance in external trade flows.

Import growth was driven by several categories linked to investment and consumption. Raw materials surged by 48.8 percent to MAD 19.23 billion. Equipment goods rose by 21.8 percent to MAD 72.6 billion. Consumer goods increased by 15.2 percent to MAD 72.9 billion. Semi-finished products posted a smaller rise of 2.7 percent. Food imports declined by 5.9 percent to MAD 31.51 billion, suggesting either easing demand or improved domestic supply conditions in some segments.

Export performance remained concentrated in a limited number of industries. The automotive sector recorded the strongest growth, rising 18.6 percent to MAD 58.28 billion, reinforcing its role as Morocco’s leading export engine. Aerospace exports increased by 15.9 percent to MAD 11.03 billion, reflecting continued industrial expansion in high-value manufacturing.

Other export sectors showed weaker or negative trends. Textiles and leather fell by 6.7 percent, while electronics and electrical products dropped by 3.5 percent. Phosphate exports, a traditional pillar of the export base, declined by 1.5 percent. Agricultural and agri-food exports grew marginally by 0.8 percent, indicating limited momentum outside industrial segments.

Despite the widening goods deficit, services continued to provide a buffer for the external balance. The services surplus increased by 16.4 percent to MAD 54.91 billion. Service exports rose by 13.9 percent to MAD 106.09 billion, outpacing the 11.4 percent growth in service imports. This performance helped partially offset the pressure created by merchandise trade.

The overall data points to an economy in expansion, with rising imports of machinery and equipment typically associated with investment and industrial activity. However, it also highlights growing pressure on the trade balance when export growth does not keep pace. The concentration of exports in automotive and aerospace sectors underscores progress in industrial upgrading, while weaker performance in other sectors signals ongoing challenges in diversification.