Morocco: Trade deficit reduced by 7.3% in 2023

By:Mohamed Ben Abderrazek 

In 2023, the Moroccan economy showcased resilience amid global economic tensions, as noted by the Foreign Exchange Office. Despite the challenging environment, Morocco’s total exports underwent a modest increase of 0.2%, signalling a significant accomplishment in the unstable global context.

This growth was largely driven by the energy and automobile sectors, which played a key role in bolstering Moroccan exports. Notably, the electronics, electrical, and automobile sectors saw notable growth, with increases of 28.4% and 27.4% respectively. This trend highlights the enhanced competitiveness of Morocco’s industry in critical areas.

Moreover, Morocco performed a significant lowering in its trade deficit. Data from the Foreign Exchange Office announced a 7.3% decline in the trade balance deficit from the previous year, reflecting improved management of international trade. The trade deficit stood at 286.3 billion dirhams ($28.3 billion) in 2023, down from 308.8 billion dirhams in 2022. This progress is largely due to a 2.9% drop in imports, while exports maintained a slight growth, reaching 429.31 billion dirhams.

A closer look at the data indicates the drop in imports was largely attributable to a 28% decrease in raw product imports, such as raw sulfur, and energy products like diesel. Conversely, imports of food products increased by 3.3%, pointing to ongoing challenges in this sector.

Despite these positive trends, certain industries encountered difficulties. Phosphate and derivative sales decreased by 34.1%, and the agriculture and agri-food sector stayed nearly stable, indicating the need for policies to foster growth in these areas.

Likewise, the High Commission for Planning forecasts Morocco’s economic growth to reach 3.3% in the fourth quarter of 2023. This improvement is credited to the resilience of secondary sectors amid adverse international conditions and the continued progress of services.