Morocco’s Trade Deficit Narrows by 14% in 2024 on Rise in Exports

Rabat – Supported by robust export growth and a decline in imports, Morocco’s trade deficit narrowed by nearly 15% in the first quarter of 2024, falling to MAD 10.7 billion ($1 billion).

At the close of Q1 2024, Moroccan exports saw a 3.2% increase, reaching MAD 113.8 billion ($11.4 billion), up from MAD 110.2 billion ($11 billion) a year prior, according to the latest report from the Office d’Echange (OE), the country’s foreign trade regulator.

Meanwhile, imports saw a modest decline of 4%, amounting to MAD 175.6 billion ($17.6 billion), down from MAD 182.7 billion ($18.2 billion) the previous year.

Following a period of near-stagnation in 2023, exports are forecasted to achieve an annualized growth rate of 4.4% by the end of 2024 and nearly 9% in 2025, as per projections from Bank Al-Maghrib (BAM), Morocco’s central bank.

This positive trajectory is primarily attributed to the expansion of the country’s automotive and fertilizer industries. The sectors are projected to export volumes worth MAD 185.1 billion ($18.5 billion) and MAD 88.5 billion ($8.8 billion) respectively in 2025.

Exports remain a crucial source of foreign currency for Morocco, alongside tourism, remittances, and Foreign Direct Investments (FDIs).

In tandem with the growth in exports, tourism revenues, and remittances are anticipated to maintain their strong performance.

BAM forecasts suggest that tourism revenues will soar to MAD 117.2 billion ($11.7 billion) in 2025, marking a 5.8% year-over-year increase.

Likewise, remittances are expected to hit a record MAD 123.7 billion ($12.3 billion) in 2025, reflecting a 5.3% year-over-year rise.

FDIs are also poised for growth, bolstered by favorable economic conditions. After dipping to 2.4% of GDP in 2023, FDIs are projected to stabilize at nearly 3.1% of GDP in both 2024 and 2025.

In addition, official reserve assets are set to continue their upward trajectory, reaching MAD 382 billion ($38.2 billion) by the end of 2024 and MAD 395.6 billion ($39.6 billion) by 2025.

The reserves are expected to cover five and a half months’ worth of imports of goods and services by the end of 2025.