Moroccan Economy Grows in Q1 2024 Despite Agricultural Challenges
The national economy of Morocco is reported to have grown by 2.9% in the first quarter of 2024, driven by a 4% increase in non-agricultural value added, according to the Haut-Commissariat au Plan (HCP).
Despite a downturn in agricultural value added, economic activity continued to improve, mainly propelled by the secondary sector and the ongoing strengthening of services, as explained in the HCP's economic outlook for the first quarter of 2024 and prospects for the second quarter.
Agricultural activities experienced a 3.9% decline in the first quarter of 2024 compared to the previous year, largely due to unfavorable weather conditions affecting the planting of autumn and winter crops.
Areas planted with cereals saw a significant decrease, reaching 42.5% below the five-year average, mainly limited to favorable areas such as Saïs, Loukkous, and parts of Gharb.
Although rains returned in March, reducing the rainfall deficit to 20.6% since the start of the agricultural season, benefiting some crops, they could not fully compensate for the losses suffered by early crops.
In the animal sector, efforts to rebuild livestock were hindered by the degradation of pastures and the prolonged lack of rainfall during the first five months of the campaign, resulting in continued reliance on livestock imports.
On the other hand, prospects for poultry meat improved, especially due to the decline in international food prices, leading to an increase in chicken meat production compared to the previous year.
In the secondary sector, value added increased by 6.3%, driven by the technical rebound of extractive industries and significant growth in phosphate production.
The manufacturing industry showed growth of 6.8%, especially in sectors such as chemistry, transportation, and rubber.
In the tertiary sector, moderate growth was observed, with business services leading the expansion while services for individuals and commerce grew more moderately.
In summary, despite challenges in the agricultural sector, overall economic growth remained robust in the first quarter of 2024, with positive expectations for the coming quarters.