The rise of the trade deficit is a result of the cumulative growth of multiple import sectors across the country.
Rabat – Morocco’s trade deficit grew 1.5% in 2019, reaching MAD 209 billion ($21.6 billion), according to Exchange Office.
Total imports and exports grew in 2019, with imports growing 2% at MAD 491 billion ($50.9 billion), overtaking exports. The country’s exports grew 2.4% at MAD 282 billion ($29.2 billion).
Morocco, home to French carmakers Renault and Peugeot, grew its automotive sector imports by 6.6%, to stand at MAD 77.1 billion ($7.9 billion).
Agri-food exports rose 4.1% to MAD 60 billion. Although, the exportation of phosphates dropped 5.9% due to low fertilization sales, shrinking to MAD 60 billion ($6.2 billion).
Foreign exchange reserves in Morocco rose to 6.4% at MAD 244 billion ($25.3 billion), enough funding for five months of imports, according to the World Bank.
Foreign direct investments dropped nearly half, with a 46.8% drop to MAD 18.1 billion ($1.8 billion).
Remittances from Moroccans living abroad, an important asset to Morocco’s currency flow, were stable with MAD 64.8 billion ($6.7 billion).
Energy imports, including gas and oil, dropped 7.2% to MAD 76.4 billion ($7.9 billion). Morocco is the largest energy importer in North Africa.