Morocco’s Trade Deficit Soars to New Heights Amid Energy Price Crisis

Morocco’s trade deficit rose by a staggering 48.7% at the end of the first quarter of 2022, amounting to MAD 150.5 billion ($14.6 billion), its highest level in over five years.

Rabat – Morocco’s trade deficit rose by a staggering 48.7% at the end of the first quarter of 2022, amounting to MAD 150.5 billion ($14.6 billion), its highest level in over five years.

Following the underlying trend of skyrocketing fuel and energy prices, the cost of Morocco’s energy imports rose by almost MAD 40 billion ($3.8 billion), the highest growth rate across the board, according to the latest monthly report from the Exchange Office (OE), Morocco’s external trade watchdog.

OE data also points out that the cost of energy imports rose to MAD 71.4 billion ($6.9 billion) at the end of June 2022, rising from MAD 31.8 billion ($3 billion) in the previous year.

Regarding the import of food commodities, OE statistics indicate that the value of wheat imports has especially soared, marking an annual increase of 55% annually.

The value of wheat imports rose to MAD 13.3 billion ($1.3 billion) at the end of June 2022, up from MAD 8.6 billion ($841.6 million) the year before.

In addition to energy products, ammonia – an essential component for the production of fertilizers – imports have equally increased substantially over the same period, rising at a 55.2% annual rate.

Ammonia imports totaled MAD 10.4 billion at the end of June 2022, up from MAD 2.8 billion ($274 million) at the end of June 2021.

In its monthly report on the progress of exterior trade, Morocco’s Exchange Office also highlights the significant increase in foreign direct investment in the country.

According to the report, foreign direct investment in Morocco rose by an annual rate of 89% at the end of June 2022, reaching MAD 16.1 billion ($1.5 billion).