Casablanca – The latest data released by the Exchange Office reveals a promising trend in Morocco’s trade performance for the first four months of 2024. The trade deficit has shrunk by 1.4 percent compared to the same period last year, standing at approximately $9.35 billion, down from around $9.48 billion.

Several factors can be attributed to this positive development, notably a 1.6 percent increase in goods imports, reaching approximately $24.88 billion by April 2024. Concurrently, exports have shown robust growth of 3.5 percent, totaling approximately $15.55 billion.

However, the trade in services shows a different trend. The Exchange Office reported a 6.8 percent drop in the services surplus, now approximately $3.99 billion, down from about $4.28 billion in April 2023. This decline is mainly due to a 15.7 percent increase in services imports, while services exports grew by only 4.2 percent.

In parallel, the High Commission for Planning disclosed positive trends in domestic demand. A notable increase of 3.3 percent in 2023 reflects a rebound from the previous year’s 1.2 percent decline. This surge in domestic demand contributed significantly to national economic growth, accounting for 3.7 points.

Particularly noteworthy is the robust growth in final consumption expenditure for households and non-profit institutions serving households, which rose by 3.9 percent, significantly contributing 2.4 points to economic growth.

Furthermore, investments, comprising total fixed capital formation, changes in inventories, and net acquisition of valuables, exhibited a positive trajectory. With a growth rate of 1.5 percent, investments contributed 0.5 points to economic growth, marking a stark reversal from the previous year’s negative contribution.

Despite the challenges posed by the global economic landscape, Moroccan foreign trade continues to display resilience. While exports of goods and services saw a moderate growth of 8.8 percent, imports increased by 7.4 percent. This resulted in a narrowed contribution of foreign trade to economic growth, with a negative impact of 0.3 points.

Morocco’s trade performance in the first four months of 2024 reflects a mixed yet improving outlook. While challenges persist, the narrowing trade deficit and positive domestic demand indicators signal resilience and potential for sustainable growth in the coming months.