Morocco’s Exports Plunge 30% in March Amid Coronavirus Crisis, Trade Deficit Widens

The first impacts of the covid-19 crisis on Morocco’s trade balance have just been published by the Office of Exchange. The trade balance deficit is deteriorating. According to the information gathered by Médias24, at the end of March, exports fell by 30%, or 8.5 billion dirhams, to stand at 19.9 billion. Imports, on the other hand, fell by 16% or 7.4 billion dirhams, to stand at 38 billion. Morocco’s trade deficit has therefore worsened by 1.8 billion, to reach 49.1 billion dirhams. The Office of Exchange announces more serious figures for April 2020.

The drop in exports is justified by the decline in foreign demand and disruptions in supply chains. To these causes is added the shutdown of several exporting sectors or consumers of imported goods. The spread of the epidemic in the kingdom’s main partner countries, including the European Union, has also contributed to the recorded decline. All export sectors have been impacted by the covid-19 crisis. Automotive, aeronautics, textiles and leather, phosphates and derivatives, agriculture, agri-food and electronics have all recorded declines. At the end of March, tourism revenues recorded a slight increase of 2.3%, or +337 MDH, while at the end of February they were up 11.5%, or +1.2 billion dirhams.

The Office of Exchange announces that in April, the situation of foreign trade will further deteriorate, writes Médias24. The confinement and the halt of tourism activity justify this forecast of the Office. For economists and analysts, a deeper decline in imports due to the freezing of investments and the drop in the energy bill, could get the kingdom out of trouble.