Rabat – Morocco’s trade deficit continues to narrow in February as the economy recovers from the consecutive shocks that had sent the value of imports soaring over the past three years.
Over the first two months of 2024, the trade deficit in Morocco dropped by 12%, settling at MAD 41 billion ($4 billion), down from MAD 47.6 billion ($4.6 billion) a year earlier, according to a recent report from Office d’Exchange (OE).
A trade deficit happens when a country buys more goods and services from other countries than it sells. Countries aim for a balanced trade, as failing to do so means they must tap into their much-needed foreign currency reserves to settle their accounts.
The drop in Morocco’s trade deficit is the result of decreased imports and robust exports. At the end of the first two months of 2024, the value of imported goods slid by 1.4% totaling MAD 115.5 billion ($11.4 billion).
The drop in the value of imports is the direct result of the drop in Morocco’s energy bill, food imports, and raw materials.
While national energy consumption rose by 8%, the value of energy imports dropped by 11% thanks to falling prices of petroleum gas and other hydrocarbon supplies.
Likewise, food imports dropped by 4% as a result of decreased corn imports. The OE report explains that the decrease was offset by increased wheat supplies.
Meanwhile, exports saw a 6.1% uptick reaching MAD 73.7 billion ($7.2 billion), up from MAD 69.4 billion ($6.8 billion) a year earlier.
The rise in exports is mainly due to the positive performance of Morocco’s major industries including the car industry, phosphate industry, and aeronautics.
