Morocco’s trade deficit eases 12% in May

Morocco’s trade deficit shrunk 12% in May as the coronavirus pandemic reduced demand both for imports and exports, the foreign exchange agency said.

The 16.9% drop in imports to $17 billion from January to May came as a result of a fall in all imports except cereals, the agency said.

Exports however dwindled 20% to $10 billion as Morocco’s main industrial exports of the car making and aeronautical sectors took a hit due to a faltering foreign demand.

Phosphates exports dropped slightly by 1.6% to $2 bln while agri-food exports fell 6.3% to $3 billion.

Morocco has collected $4 billion in foreign debt to finance its balance of payments and plans to issue an international bond to keep its reserves at a comfortable level.