Home / Banking / FDI Increases, Trade Deficit Deepens
Monnaie euro Des billets et des pièces

FDI Increases, Trade Deficit Deepens

The indicators of Moroccan economy showed a positive evolution in 2018. Thus foreign direct investments (FDI) amounted to 30.2 Billion MAD at the end of the first ten months of the current year, compared to 21.3 Billion at the end of October 2017. However, the trade deficit is worsening.

According to the Exchange Office (Office des changes), during the first ten months of 2018, the flow of FDI increased by 41.5% or +8.882 MDHs: 30.271 MDHs against 21.389MDHs at the end of October 2017. The office said several sectors scored positive results, including exports and tourism.

However, imports rose by 9.2%, exacerbating the trade balance deficit to 166.9 Billion Dirhams against 154.9 Billion in 2017, a coverage rate of 57.5 percent instead of 57 percent a year earlier.

The rise in imports (393.323 MDHs vs. 360.072 MDHs) is due to the increase of purchases of all product groups, mainly energy products (+11.125 MDHs), capital goods (+7.798 MDHs), and finished consumption products (+5.865MDH), according to the Exchange Office.

Exports also recorded an increase of 10.3%, amounting to 226,344 MDHs instead of 205,127 MDHs at the end of October 2017. The sectors contributing most to these results are phosphates and derivatives (+5.391 MDHs), automotive sector (+5.328 MDHs), and agriculture and agri-food (+2.714 MDHs). These three sectors contribute 63.3% of the total increase in exports.

At the same time, the textile & leather and aerospace sectors increased by 1,409 MDHs and 1,386 MDHs, respectively.

In addition, tourist receipts increased by 0.2% or + 118 MDHs (61.369 MDHs against 61.251 MDHs a year earlier).

Check Also

Mission accomplished for the Moroccan military hospital in Lebanon

The Field Medical and Surgical Hospital deployed in Beirut has completed its humanitarian mission for …

Leave a Reply