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Growth in Moroccan wholesale trade signals optimism for early 2025

Growth in Moroccan wholesale trade signals optimism for early 2025
Thursday 13 - 08:33 By: Dakir Madiha
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Moroccan wholesale trade sector sees growth amid challenges for services

Morocco’s wholesale trade sector demonstrated resilience in late 2024, with 36% of enterprises reporting an uptick in sales during the fourth quarter, as revealed by a survey conducted by the High Commission for Planning (HCP). This growth contrasts sharply with the struggles faced by the non-financial services sector, where 49% of businesses experienced a downturn in activity.

Despite the challenges, there is a prevailing sense of optimism as businesses prepare for early 2025. Approximately 37% of service sector companies and 28% of wholesalers are anticipating growth in the forthcoming quarter.

The downturn in the non-financial services industry has been attributed to declines in telecommunications, air transport, and real estate services, with nearly half of the business leaders in these areas reporting diminished activity. Conversely, sectors such as hospitality, land transport, and warehousing demonstrated growth during the same period.

The capacity utilization rate for the sector stood at 74%, reflecting a significant engagement among businesses. A notable 79% of respondents indicated that their order books were at a satisfactory level. Employment remained stable in 59% of companies, although 22% reported job reductions. Investment priorities for 2024 were directed primarily at equipment replacement and business expansion, according to 76% of business leaders.

As the new year unfolds, 37% of business leaders remain optimistic about growth in the first quarter of 2025, while only 8% predict a decline. Positive projections are being made for land transport, warehousing, and IT services. Nevertheless, challenges loom over postal services and engineering activities, which may struggle to maintain momentum.

The expectations for stability are bolstered by the sentiment of most businesses—68% forecast demand to remain consistent, while 27% predict an increase. Employment levels are also expected to hold steady, with 48% of businesses forecasting stability and 31% anticipating more hiring.

During the same period, the wholesale trade sector not only thrived but also exhibited stable conditions, with 53% of businesses reporting consistent market performance. The most robust growth occurred within the realms of industrial equipment, agricultural products, and specialized wholesale trade.

Employment conditions in the sector remained stable for 77% of businesses, while 86% indicated normal inventory levels. Pricing dynamics showed that most business leaders (68%) maintained steady sales prices, with 27% reporting reductions.

Looking ahead to early 2025, 64% of wholesalers expect their sales to stabilize, while 28% foresee a growth trajectory. Expected drivers of sales include household goods, food and beverages, and industrial machinery; however, a downturn is anticipated in agricultural products and livestock trade.

In summary, the Moroccan wholesale trade sector stands poised for continued growth, amid an atmosphere of cautious optimism as the year progresses.

 

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