Rabat – Morocco’s trade deficit is seeing further improvement as robust export performance and a decline in import values continue to make a positive impact.
Over the first three months of 2024, the trade deficit narrowed by nearly 15% annualized rate, as the value of imports dropped by a year-over-year (yoy) rate of 4% and exports rose by a 3% yoy.
According to a recent report from the country’s foreign trade watchdog Office d’Exchange (OE), the value of imports settled at MAD 175.4 billion ($17.4 billion) at the end of March 2024, down from MAD 182.7 billion ($18.1 billion) a year earlier.
The sliding value of imports is primarily attributed to the drop in energy, raw material, and food bills, OE data shows.
At the end of March 2024, the country’s energy imports reached MAD 28 billion ($2.7 billion), down 13% yoy despite a slight 0.7% increase in the volume of imports. The positive momentum is due to a 33% fall in energy prices on the global markets.
Likewise, imports of raw materials dropped to MAD 7.1 billion ($705 million), marking an annual 22% decline. Food imports settled at MAD 21.8 billion ($2 billion), down 7.7% yoy.
Meanwhile, the country’s key export sectors sustained their growth momentum, with the automotive industry leading the charge. The total value of exports surged to MAD 113.5 billion ($11.2 billion), up 3% yoy.
Exports from the car manufacturing industry soared by an annualized rate of 13%, settling at MAD 38 billion ($3.7 billion).
Echoing the positive trend in the automotive sector, the aeronautic industry equally saw a commendable 13% increase in the value of exports, reaching MAD 6 billion ($596 million) at the end of the first three months of 2024.
The phosphate, textile, and agribusiness industries fared less, with exports dipping by an annual rate of 2.3%, 3.7%, and 3% respectively.
Read Also: Manufacturing and Aerospace Boom Drive Up Morocco’s Exports
