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Economy July 2, 2026 09:04 AM

Morocco’s Trade Deficit Rises 20.8% in First Five Months on Stronger Imports

Higher spending on energy and equipment outpaced export growth through May, the foreign exchange regulator says

By Priya Menon
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Morocco's trade gap widened 20.8% to 159 billion dirhams in the first five months of the year, driven by an 11.8% rise in imports to 370 billion dirhams while exports advanced 5.8% to 211 billion dirhams, according to the central foreign exchange regulator's monthly report. Energy and equipment purchases were the main contributors to the deterioration.

Morocco’s Trade Deficit Rises 20.8% in First Five Months on Stronger Imports
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Key Points

  • Trade deficit widened 20.8% to 159 billion dirhams in the first five months as imports rose faster than exports - impacts key external balance metrics and sectors tied to trade.
  • Total imports increased 11.8% to 370 billion dirhams while exports grew 5.8% to 211 billion dirhams - affecting manufacturing supply chains and import-dependent sectors.
  • Energy imports jumped 20% to 55 billion dirhams and automotive exports led with 77 billion dirhams - notable effects on energy, automotive, and phosphate sectors.

Overview

Morocco's external trade position weakened in the first five months of the year, with the annual trade deficit expanding 20.8% to reach 159 billion dirhams ($17 billion), the country’s foreign exchange regulator reported on Thursday. The regulator attributed the widening gap primarily to larger purchases of energy and equipment from abroad.

Movement in imports and exports

Total imports rose 11.8% compared with the same period a year earlier, climbing to 370 billion dirhams. Exports grew at a more modest pace of 5.8%, reaching 211 billion dirhams, producing the net increase in the deficit documented in the regulator’s monthly bulletin.

Drivers by category

Energy imports surged 20% to 55 billion dirhams, a rise the report links to the impact of tensions in the Middle East on fuel prices. Wheat imports also increased, up 8.6% to 8.3 billion dirhams ahead of a government-imposed suspension of imports in June and July intended to protect the domestic harvest.

The automotive sector remained the country's leading export category, registering 77 billion dirhams in exports, a 16% increase. The sector includes production at facilities run by manufacturers such as Stellantis and Renault operating in Morocco.

By contrast, exports of phosphates and related products, including fertilizers, fell 11.2% to 32.6 billion dirhams. The report notes that state-owned OCP Group had reduced output by 30% because of supply disruptions linked to the Middle East conflict, and that the company has announced plans to restore production to full capacity.

Other external flows

Remittances from Moroccans living abroad climbed 8.8% to 50.2 billion dirhams. Tourism receipts rose 14.3% to 53.7 billion dirhams over the same period. Foreign direct investment reached 30 billion dirhams, marking a 20% increase year-on-year, according to the regulator’s monthly figures.

Conclusion

The regulator's monthly report highlights a pattern in which faster import growth - particularly for energy and equipment - outpaced export gains in the first five months, producing a wider trade deficit. The data also underline divergent sectoral outcomes, with the automotive industry expanding exports while phosphate-related shipments contracted.

Risks

  • Rising fuel costs linked to tensions in the Middle East may continue to push energy import bills higher - directly impacting the energy import bill and external deficit.
  • Supply disruptions that reduced OCP Group output by 30% could prolong weakness in phosphate-related exports until production is fully restored - affecting the phosphate and fertilizer export sector.
  • A government suspension of wheat imports in June and July to protect domestic harvest could alter future import patterns and agricultural supply chains - introducing near-term uncertainty for grain trade flows.

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