Morocco’s 2023 trade deficit contracts on lower imports

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Morocco’s trade deficit narrowed 7.3 percent year on year to $28.6 billion in 2023, the country’s foreign trade watchdog, Office des Change (OE), said in a report.

The improvement was due to an annual 2.9 percent reduction in imports, reaching $71.5 billion, and a marginal 0.2 percent rise year on year in export values to $42.9 billion.

Imports fell due to lower shipments of energy products, semi-finished goods, and raw materials.

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Energy imports fell 20.4 percent annually, driven by a substantial $1.8 billion drop in oil and fuel oil imports. This decline was influenced by a 17.9 percent price decrease and a 7.3 percent dip in import quantities.

Additionally, the import of finished consumer goods rose 11.3 percent yearly, fuelled by a 27.7 percent rise in acquisitions of passenger car parts and a 15.4 percent increase in passenger car imports.

In contrast, food product imports saw a modest $287 million increase.

The latest World Bank report predicted that Morocco’s real GDP growth would be 3.1 percent in 2024, 3.3 percent in 2025 and 3.5 percent in 2026, as domestic demand gradually recovers from recent shocks.