RABAT - Morocco's trade deficit widened by 61.6% in the first half of 2023 to 138 billion dirhams ($14 bln) despite a slight drop in imports, data from the foreign exchange regulator showed on Friday.

Imports contracted 1.6% from a year earlier to 359 billion dirhams, overshadowing exports of 221 billion dirhams, up 1.9%, the regulator said in a monthly report.

Morocco's energy imports stood at 61 billion dirhams, down 14.8%, while the cost of wheat imports slightly dropped by 0.7% to 45.7 billion dirhams.

The automotive sector led Morocco's exports with 70.9 billion dirhams, up 34.3%.

Morocco, which has the world's largest phosphates reserves, reported a 35% drop in exports of the mineral and its derivatives - including fertilisers - to 36.7 billion dirhams.

Tourism revenue rose 68.9% to 47.8 billion dirhams, outperforming pre-COVID levels.

Remittances from Moroccans abroad, a key source of hard currency, grew 14% to 55.3 billion dirhams, while foreign direct investment dropped 29.2% to 15.5 billion dirhams.

(Reporting by Ahmed Eljechtimi;)