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Morocco Trade Deficit Increases to $16.25 Billion

Morocco Trade Deficit Increases to $16.25 Billion

Tuesday, 5 November, 2019 - 11:00
A view of Morocco's Tanger-Med port. (Reuters)

Morocco's trade deficit increased to $16.25 billion at the end of September, up 2.4 percent from the same period last year. The increase was driven by a 3.1 percent rise in imports to $38.52 billion and a 3.5 percent rise in exports to $22.25 billion, according to the foreign exchange regulator.

The import coverage rate of exports improved slightly, reaching 57.8 percent at the end of September, compared to 57.5 percent during the same period last year, as a result of export growth that was slightly higher than the rate of import growth.

The rise in imports was mainly due to an 8.9 percent increase in Morocco's procurement of processed goods, consumer goods by 4.3 percent and food by 1.8 percent.

Morocco's imports of raw materials decreased 8.5 percent with the decline in the prices of raw materials in global markets.

Energy imports declined 4.45 percent after Morocco stopped importing electricity from Algeria. The country has invested in and launched several large-scale renewable energy projects.

Figures showed that Morocco’s exports had increased as a result of a 5.4 percent rise in exports of agriculture and food industries, 4.2 percent in exports of automobiles and auto parts and 10 percent in aviation-related industries.

Exports of phosphate and its derivatives remained stable at the same level last year due to the decline in international prices. This allowed the National Moroccan phosphate company (OCP) to mitigate its impact by increasing production and increasing exports of agricultural fertilizers. This increase was also attributed to the new factories in Jorf Lasfar which are now fully operating.

Exports of other metal sectors fell 9.1 percent and exports of the electronics industry were down 6.1 percent.

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