Morocco's trade deficit narrowed by 7.3% to MAD 286.39 billion dirhams in December 2023 compared to the year prior, according to the Foreign Exchange Office. This improvement was primarily driven by a 2.9% decline in imports, reaching MAD 715.7 billion, while exports saw a modest 0.2% increase to MAD 429.31 billion. The report highlights several factors contributing to the reduced import bill. Energy products saw the most significant decline, with purchases falling 20.4% due to a 17.9% drop in prices and a 7.3% decrease in volumes, particularly for gas oils and fuel oils. Further reductions were observed in semi-finished products (-10.5%) and raw materials (-28%), driven by significant decreases in ammonia and raw sulfur purchases, respectively. Despite the overall import decline, some categories saw growth. Food product imports increased by 2.87 billion dirhams, while finished consumer goods rose by 11.3%, primarily due to higher purchases of parts and pieces for passenger cars (27.7%) and passenger cars themselves (15.4%). Capital goods also experienced a 14.4% increase, reaching MAD 161.68 billion. The Office also noted a 1.9 point increase in the coverage rate to 60%, indicating exports covering a larger portion of imports.
