Morocco's January-May trade deficit expands 20.8%
Morocco's January-May trade deficit expands 20.8% RABAT, July 2 (Reuters) - Morocco's annual trade deficit widened by 20.8% to 159 billion dirhams ($17 billion) in the first five months of this year, driven by higher energy and equipment imports, the foreign exchange regulator said on Thursday.
Imports were up 11.8% from a year earlier to 370 billion dirhams, outweighing exports at 211 billion dirhams, up 5.8%, the regulator said in a monthly report.
Morocco's energy imports surged 20% to 55 billion dirhams, highlighting the impact of Middle East tensions on fuel prices.
Wheat imports rose 8.6% to 8.3 billion dirhams ahead of an import suspension period in June-July, imposed by the government to protect the local harvest.
Morocco's automotive industry, which includes Stellantis and Renault factories, was the leading export sector at 77 billion dirhams, up 16%.
Morocco, which sits on the world's largest phosphate reserves, reported an 11.2% drop in exports of the mineral and its derivatives, including fertilisers, to 32.6 billion dirhams.
Last month, state-owned phosphates and fertilisers producer OCP Group said it would resume production at full capacity after cutting output by 30%, amid supply disruptions due to the conflict in the Middle East.
Remittances from Moroccans abroad, key to Morocco's inflow of hard currency, grew 8.8% to 50.2 billion dirhams, while tourism revenue was up 14.3% to 53.7 billion dirhams.
Foreign direct investments stood at 30 billion dirhams, up 20%.
(Reporting by Ahmed Eljechtimi, Editing by William Maclean)