Morocco’s Trade Deficit Widens in First Half of 2024
Despite export growth, rising imports, particularly in manufactured goods, have contributed to a widening trade deficit in Morocco.
According to the latest data released by the Moroccan Exchange Office, the country’s trade deficit has increased by 0.4% in the first half of 2024, reaching 139.43 billion dirhams (approximately $15.2 billion USD) compared to the same period last year.
This demand-and-heatwave-impact/” title=”Poultry and Egg Prices Soar in Morocco Amidst Summer Demand Surge”>widening gap is primarily attributed to a surge in imports, which reached 365.87 billion dirhams, marking a 2% increase year-on-year. The rise in imports was largely driven by a demand for manufactured goods, including equipment, semi-manufactured products, and consumer goods.
Despite this trend, Moroccan exports demonstrated resilience, growing by 3% to reach 226.43 billion dirhams. This growth led to a slight improvement in the coverage rate, which measures the proportion of imports covered by exports, reaching 61.9%.
Key export sectors driving this growth include:
Aerospace: Recording the highest increase at 16.5%, reaching 12.97 billion dirhams.
Automotive: Showing a robust 9% increase, reaching 80.54 billion dirhams.
Phosphates and derivatives: Growing by a significant 7.5% to reach 38.56 billion dirhams.
However, certain sectors experienced a decline in exports, including textiles and leather, other minerals, electronics and electrical goods, and agriculture and food industries.
The increase in Morocco’s trade deficit reflects a global trend. According to the World Trade Organization (WTO), global merchandise trade volume is expected to slow in 2023, with growth projected at just 1.7%, down from 2.7% in 2022. This slowdown is attributed to various factors, including the ongoing war in Ukraine, high inflation, and tighter monetary policies in developed economies.
Looking ahead, Morocco’s trade balance will likely be influenced by:
Global economic conditions: A slowdown in global demand could impact Moroccan exports.
Domestic demand: Continued growth in domestic demand could further fuel imports.
Government policies: Policies aimed at boosting exports and promoting domestic production could help to mitigate the trade deficit.
Understanding these dynamics is crucial for policymakers and businesses alike as they navigate the evolving global trade landscape.
