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)