The trade deficit shrank by 32.7% in January 2021 compared to the same period of last year.
Rabat – Morocco’s trade deficit was reduced by 32.7% to MAD 11.06 billion ($1.2 billion) in the first month of 2021, according to a foreign exchange regulator’s press release.
Moroccan imports and exports dropped by 16% and 5.2%, respectively. The trade balance ratio has improved by 7.8 points and is now set to 68.4%.
A country’s “trade deficit” refers to the country’s surplus imports relative to its exports. The lower a country’s trade deficit is, the more it is considered an “exporting nation.”
Energy imports decreased by MAD 2.029 million ($227.337). The energy bill was reduced by 30.4% in January 2021 due to a decline of MAD 1.732 million ($194,060) in diesel and fuel-oil imports compared to the same period of the previous year, the regulator explains in the monthly report.
Capital goods imports have been cut by MAD 1.772 million ($198.542) from MAD 10.801 million ($1.210.190) in January 2020 to MAD 9.029 million ($1.011.647). This decrease is mainly due to the decline in purchases of piston engines by MAD 264 million ($29.579.695) and of commercial vehicles by MAD 248 million ($27.786.986).
The same source states that the decline of exports affected sales in the automotive sector, textile and leather, and aeronautics. The share of this sector in total exports represents 28.8% in January 2021 compared to 30.9% a year earlier.
Exports of phosphates and byproducts rose by 12.6% at the end of January 2021. The sector’s share of total exports increased by 2.2 points from 12.2% at the end of January 2020 to 14.4% at the end of January 2021.
The monthly report indicates that exports from agriculture, food industry, electronics, and electricity remain relatively stable at the end of January 2021.
The balance of service transactions goes down by 44.7%.
Travel spending fell by 56.4% as well and the travel receipts show a decrease of MAD 4.538 million ($508.457) at the end of January 2021 compared to the same month a year earlier.