The COVID-19 pandemic has so far dominated 2020 causing significant decreases in Morocco’s foreign trade economy.
Rabat – Recently published statistics from the Exchange Office show how the COVID-19 crisis has impacted Morocco’s foreign trade components in 2020. The global pandemic has shaken the country’s exports, imports, remittances, and foreign direct investments (FDI) resulting in double-digit declines.
Between January and May 2020, imports saw a 16.9% annual decline. Imports on finished consumer goods dropped by MAD 11 billion (€1 billion), capital goods imports decreased by MAD 10.52 billion (€9.63 million), energy products lost MAD 9.26 billion (€8.5 million), and raw products saw a fall of MAD 2.24 billion.
On the other hand, food product imports saw an increase of MAD 5.16 billion (€4.7 million), reaching MAD 26.92 million (€2.4 million) by the end of May 2020 compared to MAD 21.76 (€1.2 million) at the end of May 2019. Both wheat and barley purchases increased in the first five months of this year.
Meanwhile, exports dropped by 20.1% or MAD 25 million (€2.2 million). This decline reflects a decrease in sales in nearly all sectors.
The automobile industry’s financial intake fell 39.4%, reflecting the decline in sales of wiring, construction, and vehicle interior parts.
Textile and leather sales dropped 33.8%, taking into account nearly MAD 4 billion (€366 million) lost from sales of ready-made clothing and MAD 1 billion (€91 million) lost from knitted items.
Agriculture exports declined 6.3% as sales in the food industry fell by 10.4%.
Aeronautics lost 14.6% of profit compared to last year. Electronics and electricity dipped 7.4%, while phosphates and derivatives took a hit of 1.6%.
Moroccan agriculture, forestry, hunting, and fisheries sales fell by MAD 208 million (€19 million), and aquaculture sales fell by MAD 56 million (€5 million). However, compared to 2019, shares in this sector made gains of 4.3%.
Moroccan residents abroad (MRE) remittances were down 12.4% by May of this year compared to last.
With tourism accounting for 11% of Morocco’s total GDP, the main component of the country’s FDI suffered 24.2%.
The COVID-19 crisis may throw a wrench in Morocco’s significant FDI growth over the years. Between 2015 and 2019, FDI grew 6.3% annually. As well, other parts of the economy are reeling and looking forward to the slow resumption of business as chains of supply and demand rebuild themselves after months of lockdown and state of emergency measures worldwide.