Morocco's trade deficit widens by over $94 billion in ten months, up 56.4% compared to last year

Morocco’s trade is on the upswing, but the acceleration has benefited exports more. At the end of October 2022, Morocco imported MAD 614.935 billion, up 44.2%, and exported MAD 354.095 billion, up 36.4%.

Morocco’s trade has benefited more exports than imports. This has resulted in a widening of the trade deficit of more than 94 billion in the first ten months of this year, up 56.4% compared to the same period of 2021, according to the latest figures of the Office of Foreign Exchange on foreign trade.

With an increase of 36.4% over one year, exports have reached MAD 354.095 billion. All products exported by the Kingdom is concerned by this improvement. Sales of phosphates and derivatives are leading with an increase of 63% to MAD 100.137 billion.

“This increase is attributable to the increase in exports of natural and chemical fertilizers due to the price effect which has doubled. In contrast, the quantities exported fall by 10%,” says the Office of Foreign Exchange.

In the automotive sector, exports have grown by 36.7% to MAD 89.18 billion. This is their highest level during the same period in the last five years. This dynamic concerns both sales of the construction segment (+54%) and that of wiring (+24.6%). On the other hand, exports in the vehicle interiors and seating segment have remained almost stable.

Regarding the agriculture and agribusiness sector, sales have jumped 19.9% to MAD66.957 billion. A performance that is explained by the simultaneous increase in sales of food industry (+22.1%) and those of agriculture, forestry and hunting (+16.9%).

Exports of textiles and leather are not left behind, since they have evolved by 24.4% in the first ten months of the year over a year. “This development is attributable mainly to the increase in sales of ready-made garments (+26.2%), hosiery (+16.6%) and shoes (+31.5%). In addition, the share of the sector in total exports fell to 10.6% against 11.6% at the end of October 2021.

Regarding imports, Morocco has purchased for MAD 614.935 billion, at the end of October, a net increase of 44.2% over one year. All product groups are affected by this increase.

Thus, the energy bill has more than doubled to reach MAD 128.313 billion. This performance is associated with the increase in purchases of all energy products, mainly those of gas oil and fuel oil, driven by the increase in prices that have more than doubled, “and to a lesser extent by that of the quantities.

Imports of semi-finished products have, for their part, increased by 51.3%, following the strong growth of purchases of ammonia.

For their part, imports of food products have increased by 54.4%. A development that is explained by the increase in supplies of wheat, which have more than doubled under the price effect.

Meanwhile, the quantities imported show a gain of 48.8%. Ditto for purchases of barley, which recorded significant growth to settle at MAD 3.18 billion, against 742 million a year earlier.

Finally, imports of raw materials show an increase of 58.8%. “This increase is due to the increase in purchases of crude and unrefined sulfur which have more than doubled (+ MAD 8.758 billion).”

In addition, the balance of trade in services recorded a surplus of MAD 88.729 billion, an increase of 69.1% over one year. This follows an increase in exports of +56% to MAD 176.592 billion, more important than that of imports, or +44.7% to MAD 87.863 billion.

As a sign of recovery, travel revenues have more than doubled from MAD 28.563 billion at the end of October 2021 to MAD 71.101 billion one year later.

“These revenues show an exceptional increase of MAD 42.37 billion compared to the same period of 2020 and also exceed the level reached at the end of October 2019,” notes the Office of Exchange. Expenditures, meanwhile, stand at MAD 13.382 billion.

This level remains lower than those recorded in 2018 and 2019, years before the Covid-19 crisis. Thus, the surplus balance of travel has almost tripled to MAD 57.719 billion at the end of October 2022, against only MAD 19.891 billion a year earlier.

On another front, remittances from Moroccan nationals reached MAD 88.997 billion, during the first ten months of the year, or 11.5% more than last year.