The Exchange Office said the value of Morocco’s purchases of barley, wheat, and soybean oil from the beginning of the year to the end of May amounted to about MAD 15.8 billion.
Compared to the same period last year, the bill for these goods increased by over MAD 5 billion, said the exchange office.
The barley bill witnessed the highest increase, moving from MAD 325 million during the past year to MAD 3 billion, added the same source.
This change is driven by the drought that Morocco has experienced during this year’s agricultural season as well as the lack of rainfall.
The government resorted to importing a large amount of barley from abroad to protect the herd and help livestock breeders affected by the lack of rainfall.
Soybean oil also recorded a remarkable increase, as its bill moved from MAD 1.8 billion by the end of May 2021 to MAD 3 billion at the end of May 2022, with a growth rate of 62.2%.
Soya oil prices were affected by the lack of supply at the global level because of the unfavorable climate conditions in the major producing countries, in addition to the Russia-Ukraine war’s effect on the supply chain.
The value of imported wheat during the first five months amounted to about MAD 9.8 billion, compared to MAD 8.6 billion recorded a year earlier, with a growth of nearly 14.8%.
Morocco’s trade deficit will worsen by the end of the current year due to the rise in the energy bill, following the spike in fuel prices.
The combination of the COVID-19 pandemic, unprecedented drought, and growing global inflation may push the Moroccan economy into a deep recession, and lead to an increase in poverty, explained the World Bank in a recent press release, announcing a USD 500 million loan for Morocco.
The World Bank said the loan will help support the government in strengthening the institutional and coordination framework for disaster and climate-related risk management, as the government continues to implement mechanisms to fight against the effects of external and internal economic blows.
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