Morocco faces rising trade deficit amid surging industrial and steel demand

Morocco is experiencing a widening trade deficit and rising industrial demand. In the first half of 2026, the trade deficit increased by 23.5% to 198.38 billion dirhams, reaching its lowest coverage ratio of 56.8% since 2018. This imbalance is driven by a 15.3% rise in imports, fueled by increased demand for equipment and energy, with energy imports specifically rising by 28.9% due to higher gas-oil and fuel-oil supplies.

Simultaneously, domestic steel demand is projected to grow by 7% to 8% in 2026, potentially exceeding 3 million tonnes by 2027. This growth is supported by the construction sector, wind energy projects, and a booming automotive industry. Major manufacturers like Renault and Stellantis are expanding capacity, contributing to a significant rise in car exports. Large-scale infrastructure projects, including the Nador West Med port and high-speed rail links for the 2030 World Cup, are also expected to drive industrial requirements.