Casablanca – Morocco’s foreign trade saw notable developments in 2024, with both imports and exports registering growth, despite a widening trade deficit. According to the latest figures from the Office des Changes, exports increased by 5.8% to reach approximately $46.9 billion, while imports rose at a slightly faster pace of 6.4%, amounting to around $78.5 billion. As a result, the trade deficit expanded by 7.3% to $31.6 billion, with the coverage rate of imports by exports slipping from 60.1% to 59.8%.
Declining energy costs
One of the key positive factors in Morocco’s trade balance was the decline in energy costs. The country’s energy bill dropped by 6.5% to approximately $11.8 billion, driven mainly by reduced coal, coke, and similar fuel imports, which fell by 23.2% in value due to both lower prices (-17.2%) and a decline in imported volumes (-7.2%). Additionally, petroleum gas and other hydrocarbons saw an 11.2% drop to $2.2 billion, while gas-oils and fuel-oils decreased by 2% to $5.9 billion.
Strong export performance
Exports were led by the automobile industry, which continued its upward trajectory, growing by 6.3% to $16.2 billion. This expansion was attributed to increased sales in vehicle manufacturing, wiring, and interior components. The phosphate and derivatives sector also experienced a significant boost, with exports rising by 13.1% to $8.9 billion, supported by higher sales of fertilizers, phosphoric acid, and raw phosphates.
The agriculture and agri-food industries contributed $8.8 billion in exports, marking a 3.1% increase. Growth was observed across various agricultural products, forestry, and tobacco-related sales. The aeronautics sector posted the highest export growth rate at 14.9%, reaching $2.7 billion, fueled by strong demand in assembly and Electrical Wiring Interconnection Systems (EWIS).
Rising import costs
While exports grew, imports expanded more rapidly, especially in key industrial and consumer goods. Imports of finished equipment products surged by 12.9% to $18.6 billion, mainly due to increased purchases of utility vehicles, electrical circuit components, and machinery for rubber and plastic processing. Consumer goods imports also saw a 10.7% increase, reaching $18.3 billion, largely driven by higher purchases of car parts, passenger vehicles, and pharmaceuticals.
Intermediate goods imports grew by 8% to $16.9 billion, bolstered by chemicals, semi-finished iron and steel products, and metal construction materials. Additionally, food imports reached $9.4 billion, a 2.2% rise, primarily due to increased imports of live animals and coffee, despite a reduction in soybean oil purchases.
Financial flows and trade balance impact
The trade deficit’s expansion was partially offset by positive financial inflows. Moroccan expatriate remittances climbed by 2.1% to $12.1 billion, providing a crucial economic boost. Meanwhile, tourism revenues hit a record $11.6 billion, growing by 7.5%. However, travel expenses rose sharply by 22.9% to $3 billion, moderating the net balance to $8.6 billion, up by 2.9%.
Foreign direct investments (FDI) in Morocco showed remarkable growth, with net FDI inflows surging by 55.4% to $1.8 billion. While FDI revenues increased by 24.7% to $4.5 billion, outbound FDI investments from Morocco decreased by 5%, resulting in a net outflow reduction of 23.2% to $630 million.
Morocco’s trade landscape in 2024 highlights both progress and persistent challenges. While exports in key industries continue to perform well, the rising trade deficit underscores the need for enhanced competitiveness and diversification of export markets. The decline in energy costs and growing foreign investment present opportunities for economic resilience in the years ahead.