Casablanca – Morocco recorded a notable widening of its trade deficit during the first quarter of 2026, reflecting sustained pressure on external balances as import growth continued to outpace export performance. Recent data released by the Foreign Exchange Office highlights a mixed trade environment, with solid gains in key industrial sectors partially offset by rising import costs and declining exports in several traditional industries.

By the end of March 2026, Morocco’s trade deficit reached approximately $9.01 billion, representing an increase of 23.9% compared to the same period in 2025. This expansion was primarily driven by a faster rise in imports relative to exports, leading to a further imbalance in the country’s trade position.

Total imports stood at around $21.47 billion, up 11.1% year-on-year. In contrast, exports rose at a more moderate pace of 3.3%, reaching approximately $12.44 billion. As a result, the export coverage ratio declined by 4.4 percentage points to 58%, indicating that exports are covering a smaller share of imports than in the previous year.

Import growth driven by key categories

The increase in imports was broad-based, with several categories registering significant growth. Imports of raw materials surged by 42.2% to approximately $1.35 billion, reflecting higher demand for industrial inputs. Capital goods also recorded a strong increase of 24.7%, reaching about $5.33 billion, suggesting continued investment in equipment and infrastructure.

Consumer goods imports rose by 14.6% to around $5.32 billion, indicating sustained domestic demand. Meanwhile, imports of semi-finished products increased slightly by 2.1% to approximately $4.13 billion. In contrast, food imports declined by 6%, falling to about $2.32 billion, possibly reflecting improved domestic supply conditions or changing consumption patterns.

Industrial sectors support export growth

On the export side, performance was supported by continued strength in Morocco’s industrial base, particularly in the automotive and aerospace sectors.

Automotive exports reached approximately $4.33 billion by the end of March 2026, marking a 12.1% increase compared to a year earlier. This growth was largely driven by higher sales in vehicle manufacturing, which rose by 23.7% to around $1.74 billion, as well as electrical wiring, which increased by 10.9% to about $1.65 billion.

Similarly, the aerospace sector posted solid growth, with exports rising by 12.6% to nearly $825 million. This improvement was supported by a strong increase in assembly activities, which grew by 18.6%, along with a modest 1.6% rise in electrical wiring interconnection systems (EWIS).

These figures underscore the continued development of Morocco’s export-oriented manufacturing sectors, which remain key drivers of industrial growth and integration into global value chains.

Declines in traditional export sectors

Despite these gains, several traditional export sectors experienced declines during the same period. Exports of textiles and leather fell by 14.1%, while phosphates and their derivatives declined by 7.4%. Electronics and electrical goods exports decreased by 4.7%, and agriculture and agri-food products dropped by 2.3%.

These declines highlight ongoing challenges in sectors that have historically contributed significantly to Morocco’s export base, suggesting the need for further diversification and competitiveness improvements.

Services sector provides partial relief

In contrast to the goods trade balance, Morocco’s services sector recorded a positive performance. The services trade surplus increased by 16.1%, reaching more than $3.99 billion by the end of March 2026.

This growth was driven by a 13.2% increase in services exports, which totaled approximately $7.86 billion, alongside a 10.4% rise in services imports, reaching around $3.87 billion. The expansion of the services surplus helped partially offset the widening goods trade deficit, providing some support to the overall external balance.

Outlook and structural challenges

Morocco’s external trade data for the first quarter of 2026 reflects a complex and evolving economic landscape. While industrial sectors such as automotive and aerospace continue to perform strongly, the faster pace of import growth remains a key concern, contributing to a widening trade deficit.

The data also underscores structural challenges, including reliance on imported goods and uneven export performance across sectors. Analysts suggest that strengthening export competitiveness, expanding higher value-added industries, and diversifying the export base will be essential to improving trade balance dynamics in the medium term.

As global economic conditions remain uncertain, Morocco’s ability to sustain industrial growth while managing import pressures will play a crucial role in shaping its external position in the months ahead.