Morocco's trade deficit in 2021 widens by 25%, hit by energy bill and travel bans

Morocco’s trade deficit in 2021 widened by 25% compared to the year 2020 and rose to the highest levels in a decade driven by a surge in the energy bill, said regulators.

Energy imports alone amounted to 75.6 billion dirhams –  a 51% surge compared to 2020.

Overall, the country’s imports increased by 24.5% compared to the end of 2020 and 7.3% compared to the end of 2019, said the Office des Changes in its monthly bulletin of foreign trade indicators in December, adding that the coverage rate has stabilized at 62.1%.

The increase in imports of goods (+24.5%) follows the rise in purchases of all groups of products, mainly, finished consumer products (MAD +28.19 bln), energy products (MAD +25.76 bln), half-products (MAD +22.10 bln), and capital goods (MAD +13.75 Bln), said the same source.

As for the increase in imports of finished consumer products (+29.7%), it is mainly due to the increase in purchases of passenger cars (+46.5% or +5.86 billion dirhams) and those of drugs and other pharmaceutical products (+68.4% or +5.23 billion dirhams) attributable to the purchase of anti-Covid19 vaccines, noted the Office.

Remittances

Transactions made by Moroccans living abroad amounted to nearly MAD93.3 billion by the end of December 2021, up compared to MAD68.18 billion reached a year earlier, according to the exchange office.

These transactions have shown an increase of 36.8% or MAD25.07 billion, specified the Office in its monthly bulletin of foreign trade indicators for December 2021.

The Office also reported an increase in trade services, amounting to over MAD64.16 billion, up by 0.3%.

Money sent by Moroccans living abroad offset the negative impact on travel – the main component of trade in services. Losses resulting from travel bans recorded a drop of 8.9%, compared to the end of 2020 as well as the end of 2019. Compared to the pre-COVID-19 period, trade  driven by travel noted a sharp drop by 59.2%.