After estimating growth at 2.9 percent in the first quarter of the current fiscal year, the High Commissioner for Planning and Development (HCP) has just revised Morocco’s economic growth downwards.
In its latest report, the HCP announced a slowdown in Morocco’s economic growth. Instead of the 3.9 percent recorded in the same quarter last year, growth was 2.5 percent in the first quarter of 2024.
This slowdown can be explained by several factors. First, domestic demand played a key role, while inflation remained under control. In addition, the Moroccan economy benefited from an improvement in its financing capacity.
Non-agricultural activities grew by 3.2 percent, while the agricultural sector contracted by 5 percent. The value added of the primary sector also fell by 4.3 percent, mainly due to the fall in the value added of agriculture (5 percent) and the rise in that of fisheries (10 percent).
The secondary sector, on the other hand, recorded an increase of 3.6 percent, thanks mainly to manufacturing and extraction. Manufacturing grew by 2.1 percent, while mining and quarrying recorded a remarkable increase of 17.7 percent.
The tertiary sector, on the other hand, saw its growth rate slow down from 6 percent to 3 percent.
Financial services and insurance, research and development, and transport and storage all slowed down.
Gross domestic product (GDP) grew by 2.5 percent in the first quarter of 2024, despite a 5.5 percent increase in taxes net of subsidies on products. The general price level increased by 1.3%.
This economic situation requires special attention in order to maintain stability and promote recovery. Morocco will have to keep a close eye on future developments in order to adapt its economic policy accordingly.
MN/ac/lb/as/APA