$11.5 billion in remittances from Moroccan expatriates abroad in 2023 (Reuters)

Morocco's trade deficit decreased by 7.3% on an annual basis in 2023 to 286 billion dirhams ($28.6 billion) thanks to an increase in tourism revenues and a decline in energy imports

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according to the Exchange Office, the institution charged with statistics of trade and economic exchange with abroad, in its monthly report.

 Imports decline

The exchange office explained that total imports fell by 2.5% on an annual basis to 715 billion dirhams ($71.65 billion), while exports rose 0.2% to 429 billion dirhams ($43 billion), adding that remittances from Moroccans abroad and exports of the automobile industry also contributed to improving trade deficit.

The number of Moroccan expatriates reaches 5 million, according to statistics from the Ministry of Foreign Affairs, and financial remittances from expatriates are one of the most important sources of foreign exchange in the Kingdom.

Morocco's energy imports decreased by 20.4% on an annual basis to 122 billion dirhams ($12.22 billion) after a decline in demand and prices in global markets.

Wheat imports also declined by 25.3% on an annual basis to 19.3 billion dirhams ($1.9 billion), while imports of ammonia, an essential ingredient in fertilizer production, decreased by about 58% to 8.8 billion dirhams ($882 million).

Phosphate exports

Morocco, which has the largest phosphate reserves in the world, announced a 34% decline in exports of phosphate and its derivatives, including fertilizers, to 76 billion dirhams ($7.6 billion).

On the other hand, exports from the country's automotive sector, where Stellantis and Renault factories operate, rose to an unprecedented level of 141 billion dirhams ($14.13 billion).

Tourism revenues also rose to unprecedented levels, jumping 11.7% on an annual basis to 104 billion dirhams ($10.42 billion), and Morocco also received an unprecedented number of 14.5 million visitors last year.

Remittances from Moroccans residing abroad also increased by 4% on an annual basis to an unprecedented level of 115 billion dirhams ($11.5 billion).

The Exchange Office indicated that foreign direct investments amounted to 10.15 billion dirhams ($1.01 billion) during 2023, compared to 21.75 billion dirhams ($2.16 billion) during 2022, an annual decrease of 53.3%.

Source: Agencies