Morocco's trade deficit eases by 6.5%, says Changes Office

Morocco’s trade deficit stood at over MAD 169.47 billion at the end of July 2023, a 6.5% easing compared with the same period a year earlier, according to the Changes Office.

Imports fell by 2.3% to more than 419.61 billion, while exports rose by 0.8% to 250.14 billion, the Office said in a document on the monthly foreign trade indicators for July, noting that the coverage rate rose by 1.8 points to 59.6%, compared with 57.8% a year earlier.

The fall in imports of goods was mainly due to lower purchases of energy products, semi-processed goods and raw materials, explains the Office.

The energy bill fell by 20.9% to 69.38 billion at the end of July 2023, compared with 87.71 billion at the end of July 2022. Imports of semi-processed products fell by 13.1%, following a drop in ammonia purchases from 12.22 billion at the end of July 2022 to 4.97 billion in 2023.

Similarly, purchases of raw products reached 21.68 billion at the end of July 2023, compared with 28.32 billion at the end of July 2022, down 23.4%. Imports of food products fell by 2.7% to 52.91 billion from 54.37 billion.

Imports of capital goods, on the other hand, rose by 22.9%, from 77.67 billion at the end of July 2022 to 95.43 billion at the end of July 2023.

Imports of finished consumer goods rose by 14.5%, mainly as a result of a 33.5% increase in purchases of parts and components for passenger cars and a 28.4% increase in purchases of passenger cars.

With regard to merchandise exports, sales in the automotive sector stood at almost MAD 82.02 billion at the end of July 2023, up 37.4% on the same period a year earlier.

Sales in the electronics and electrical sector rose by 34.6% (+3.46 billion) to 13.48 billion at the end of July 2023, compared with 10.01 billion at the end of July 2022. Textile and leather exports rose by 11.5% (+2.95 billion).

By contrast, sales in the agriculture and agri-food sector fell slightly in the first seven months of 2023, mainly as a result of the decline in food industry exports (-2.2%).

Sales of agriculture, forestry and hunting remained stable, while those of the aeronautics sector fell by 1%. Exports of phosphates and derivatives stood at 40.86 billion at the end of July 2023, compared with 68.37 billion a year earlier.