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Rabat – After reaching record-high levels over the past two years, Morocco’s trade balance is showing signs of recovery, rising by 6.8% year-on-year at the end of June 2023.
According to a monthly publication from Morocco’s Office d’Echange (OE), trade dynamics underwent significant changes, with a decline in imports and a notable increase in exports.
The trade deficit, also known as the trade balance, indicates a nation’s ability to finance its imports through the value of its exported goods.
Ideally, countries should use foreign currency acquired from importing goods and services to pay for their imports, as failing to do so negatively impacts their reserves of foreign currency.
Over the first six months of 2023, imports dropped by 1.6%, amounting to MAD 5.8 million ($589,204). The total value of imports reached MAD 359 billion ($35 billion), down from MAD 365 billion ($36.5 billion) a year earlier.
The positive momentum was primarily supported by reduced purchases of semi-finished products, energy products, and raw materials. Imports of semi-finished products fell by 13%, or MAD 11.5 billion ($1.1 billion).
The total value of imports stood at MAD 75 billion ($7.5 billion) at the end of June 2023, down from MAD 86 billion ($8.6 billion) at the end of June 2022.
Meanwhile, the value of imported energy products dropped by 14%. The drop in demand for fuels amounted to MAD 7.9 billion ($800 million), triggered by a 15.5% drop in prices and an 8.6% drop in demand.
Likewise, imports of raw materials registered a notable decrease of 21.5% or MAD 5.2 billion ($500 million) during the first half of 2023.
Regarding exports, the country’s exports displayed a positive growth trajectory. Exports surged to MAD 221 billion ($22.1 billion), marking a 1.9% increase compared to MAD 217 billion ($21.7 billion) a year earlier.
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