The automotive industry consolidates its leading export position in Morocco
Morocco's automotive industry continues to boom. Following the results released by the Office of Foreign Exchange (OE), the Moroccan automotive sector is once again the leading export sector, achieving an estimated revenue of 92.7 billion dirhams, 8.5% more than in the previous year.
This was followed by the agri-food and phosphate sectors, which increased by 14.6% to 46.16 billion dirhams, construction with 7.3% and 40.8 billion dirhams, and infrastructure with 8.3% and 32.2 billion dirhams. Textiles, electronics and agro-industry showed slight growth.
Morocco's exports to the rest of the world increased by 5.5% to 262.4 billion dirhams at the end of the first half of the year, compared to a 15.5% increase in imports.
Automotive industry
Breaking down the data, it can be seen that, within the automotive sector, the export of vehicle interiors and seats grew the most at 18.3%, followed by the body assembly segment which grew by 8.3%.
Much of the industry's growth is due to investments in the industrial complexes of the Tangier-Tetouan-Al Hoceima Region, one of the country's main economic hubs. The continuous arrival of new brands and the improvement of access infrastructures, together with the fiscal facilities approved last year and included in the new Investment Charter, are the guarantors of the increase in export figures.
Considered one of the main automotive technology centres in the world, Morocco has not ceased to invest in the automotive sector. The increase in facilities and the possibilities it offers have led countries such as Germany, a historic institution in the sector, France, one of the countries with the greatest investment in Morocco, and China, with its new electric cars that have put the industry in check, to set their sights on Morocco.
The growth of the sector has led to better roads, as confirmed by the national company Autorutes du Maroc, which invested more than 2.58 billion dirhams in improving the country's highways and roads up to June.
Phosphate sector
Hand in hand with the automotive sector, phosphates and derivatives also showed a strong performance during the first half of the year. With an increase of 14.1%, Moroccan phosphates reached 46.16 billion dirhams.
Specifically, the EO bulletin slips that fertiliser and chemical supplies increased by 11.2% to 33.5 billion dirhams, while phosphate production rose by 49.4%.
Other sectors
It is not only automobiles and phosphates that are thriving in Morocco. The aviation industry also continues to grow in exports and importance within the country with large investments in airports and infrastructure.
Exports during the last six months increased by 20.3% to 15.34 billion dirhams, driven by assembly lines whose shipments increased by 32.4% to 10.04 billion dirhams.
On the other hand, the agricultural and agro-industrial sectors are losing export value. Supply fell by 0.9% to 51.1 billion dirhams. The same is true for textiles and leather, whose exports fell by 2.1% (27.9 billion dirhams), as well as electronics and electricity (-2.6%).
Imports and trade balance
A country's trade balance is generally in deficit, with the exception of major world powers such as China and India. Even with the increase in exports, the trade deficit rose by 1.1% to nearly 170 billion dirhams.
Spending in the first half of the year, driven by prefabricated products, which increased by 9.1%, was the main contributor to the trade deficit with an expenditure of 101.08 billion dirhams.
The Bureau de Change detailed other factors contributing to the trade deficit as the purchase of equipment for the production of electric cars, namely pistons and electrical connection systems. Between the two products, 26.7 billion dirhams worth of goods were imported.
The trend in the North African country is positive. Since reaching an all-time high of 690.2 billion dirhams in investments in 2022, the Kingdom has gradually reduced its spending. The opposite trend has been the case for exports, which have doubled since 2020, following a trend that is now approaching 30 per cent of Morocco's GDP.
The impact of the fall in the CPI further enhances the data, since during the first half of the year average inflation stood at 1%, while in 2023 it stood at 5.5%.
Pending the fulfilment and closing of agreements with major automobile companies, the construction and completion of the gas pipeline that will link Africa, Nigeria and Europe, and the completion of the technological complexes in Tangiers, the data provided by the Moroccan Bureau de Change show a change in the Moroccan macroeconomy towards a positive trade balance. This objective is expected to be achieved by the end of the decade.