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Economy

Morocco's Economy Gains Momentum: Forecasts Point to 3.2% Growth in Q3 2024

Monday 08 July 2024 - 17:50

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In a testament to its economic resilience, Morocco is poised to witness a notable uptick in growth, with forecasts indicating a 3.2% expansion in the third quarter of 2024. This projection, an increase from the 2.9% growth recorded in the preceding quarter, underscores the nation's ongoing economic recovery and the strengthening of key sectors.

The Higher Commission of Planning (HCP) recently released a report detailing Morocco's economic performance, revealing a year-on-year growth of 2.9% in the second quarter of 2024. This marks a significant acceleration from the 2.5% growth observed in the first quarter, painting a picture of steady economic progression.

At the heart of this economic resurgence lies a reinvigorated domestic demand. Consumer spending received a substantial boost, benefiting from a favorable calendar effect that aligned national and foreign religious holidays. This convergence created a ripple effect across various sectors, particularly bolstering transport and accommodation activities.

The extraction industry emerged as a standout performer, registering an impressive 15.6% increase in value added year-on-year during the second quarter. This robust growth was fueled by a significant uptick in external sales of non-metallic minerals, coupled with renewed demand from local processing industries. Experts anticipate this positive trajectory to continue into the third quarter, further solidifying the sector's contribution to the national economy.

The construction sector also demonstrated noteworthy progress, with activity expanding by 3% in the second quarter, up from 2.5% in the first. This growth was underpinned by a revival in housing production and a remarkable 20% surge in cement sales, signaling renewed vigor in the real estate and infrastructure segments.

Manufacturing industries equally showcased strong performance, with the sector's value added growing by 3.5% year-on-year in the second quarter, a substantial improvement from the 2.1% growth recorded in the first quarter. This acceleration was primarily driven by advancements in the chemical and construction-related industries, highlighting the sector's adaptability and resilience.

The service sector experienced a notable rebound, buoyed by the aforementioned surge in domestic demand. The convergence of religious holidays acted as a catalyst, stimulating consumer spending and invigorating various service-oriented activities.

However, amidst this broad-based economic progress, the agricultural sector faced significant challenges. The sector's value added declined by 4.9% year-on-year in the second quarter, a stark contrast to the 1.5% increase observed during the same period last year. This downturn is largely attributed to the severe drought that has adversely impacted major crops, underscoring the vulnerability of agriculture to climatic conditions.

As Morocco charts its course through 2024, the projected 3.2% growth in the third quarter signals a continuation of the positive economic trajectory. While challenges persist, particularly in the agricultural sector, the overall economic landscape appears promising. The nation's ability to leverage its diverse economic base and adapt to changing circumstances bodes well for its future prospects.

This economic narrative not only reflects Morocco's current resilience but also sets the stage for potential further growth and development in the coming quarters. As the nation navigates the complexities of global economic dynamics, its steady progress serves as a beacon of economic potential in the region.