France Accounts for 90% of Morocco’s FDI Inflow Increase in 2025

Casablanca – Morocco’s merchandise trade deficit reached MAD 352 billion ($37.5 billion) in 2025, equal to 21% of GDP, according to a new profile published by France’s Directorate General of the Treasury on September 10. The deficit widened 15.5% from 2024, as imports rose 8% while exports increased by only 3%.

Automobiles remained Morocco’s largest export sector, a position it has held since 2014. The sector generated MAD 151 billion ($16.1 billion), or 11% of GDP, but exports fell 2% in 2025 as the European market slowed. Vehicle construction exports dropped 14%, while wiring exports rose 8% and partly offset the decline.

Phosphates and derived products ranked second, reaching MAD 100 billion ($10.7 billion), or 6% of GDP, after growing 15% on stronger Indian demand. Agriculture ranked third at MAD 87 billion ($9.3 billion), or 5% of GDP, with almost no change. Aerospace exports rose 10%, while metallurgy, plastics and rubber grew about 15%.

On the import side, finished consumer and capital goods were the largest categories, totaling MAD 400 billion ($42.6 billion), or 23% of GDP. Passenger and utility vehicle imports jumped 38% and 66%. Sulfur imports also rose, alongside a 66% increase in Moroccan fertilizer exports. Lower energy imports partly offset the broader 8% rise in imports.

Trade partners remain concentrated in Europe

Spain was Morocco’s top export market in 2025, accounting for 21.5%, followed by France at 18.9%, Turkey at 9.7%, Germany at 5.3% and India at 5.1%. China was the largest supplier at 13.9%, followed by Spain at 13.6%, the United States at 9.3%, France at 9% and Turkey at 5.5%.

The annex from Morocco’s Office of Foreign Exchange also ranks Italy, the United States, Brazil, the United Kingdom and the Netherlands among Morocco’s main customers, while Saudi Arabia, Germany, Italy, countries outside the Arab Maghreb Union and India also appear among its main suppliers.

The current account deficit widened from 1.2% of GDP in 2024 to 2.5% in 2025. The services balance remained in surplus at MAD 157.7 billion ($16.8 billion), or 9% of GDP, supported by tourism. Morocco recorded 19.8 million international arrivals, with France, Spain and the United Kingdom accounting for 14%, 9% and 6%.

Remittances from Moroccans living abroad reached MAD 122 billion ($13.0 billion), or 7% of GDP, but growth slowed to 2.6%, compared with an average of 3.6% over the previous two years.

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Public secondary income also fell by MAD 1.4 billion ($149 million) after exceptional official development assistance receipts in 2024.

The financial account improved sharply, with its balance excluding reserve assets rising from MAD 5 billion ($533 million) to MAD 90 billion ($9.6 billion), equal to 4.5% of GDP.

Foreign direct investment inflows increased from MAD 17 billion ($1.8 billion) to MAD 31 billion ($3.3 billion), with financial and insurance activities contributing MAD 7 billion ($746 million). France accounted for 90% of the increase in foreign investment inflows, rising from negative MAD 2.2 billion (-$235 million) in 2024 to MAD 10 billion ($1.1 billion) in 2025.

Moroccan outward investment also increased, driven by banking and insurance expansion. Investment in Côte d’Ivoire rose from MAD 0.6 billion ($64 million) to MAD 3.2 billion ($341 million), while flows to Italy fell from MAD 3.3 billion ($352 million) to MAD 0.3 billion ($32 million).

Portfolio investment improved the balance by 1.5 percentage points of GDP, helped by debt securities moving from negative MAD 3.6 billion (-$384 million) to MAD 33 billion ($3.5 billion). The change included Morocco’s MAD 2 billion ($213 million) euro Treasury bond issue in March 2025.