Morocco’s Economy Sees Robust Growth as GDP Climbs 10% in 2023

Monday 09 December 2024 - 15:00

By: Dakir Madiha

Morocco’s Economy Sees Robust Growth as GDP Climbs 10% in 2023

Morocco's economy demonstrated significant resilience and growth in 2023, with the nation’s Gross Domestic Product (GDP) reaching MAD 1.463 trillion (approximately $146 billion USD), marking a 10% increase compared to the previous year, according to the High Commission for Planning (HCP).

Economic Contributions by Sector

The corporate sector, comprising financial and non-financial companies, was the largest contributor to the GDP, accounting for 45.1% of the total. The public administration sector experienced a slight decline, contributing 15.2%, down from 16.3% in 2022. Meanwhile, households and non-profit institutions serving households (ISBLSM) increased their share to 29.6%, up from 28.6% in the previous year.

Taxes on production and imports, after subtracting subsidies, rose by 0.5 percentage points, representing 10.1% of the GDP.

Growth in National Income and Household Savings

The Gross National Disposable Income (GNDI) also saw substantial growth, increasing by 9.7% to reach MAD 1.576 trillion. This was driven by a 10.5% rise in company income, a 9.7% increase for households and ISBLSM, and an 8.9% gain for public administrations.

Households and ISBLSM accounted for the majority share of national income at 64.3%, followed by public administrations at 19.6%, and companies at 16.1%. Notably, financial companies contributed 2% to the total.

Household Disposable Income and Spending

Household disposable income rose by 9.6% to MAD 996 billion, compared to a 4.6% increase in 2022. Employee salaries, comprising 45% of this income, grew by 5%, while mixed income, including housing services, surged by 14%. Property income saw a sharp rise of 26%, further supporting household earnings alongside social benefits and other transfers, which contributed 31.9% of total income.

However, taxes on income and property, along with social contributions, reduced disposable income by 16.9%. Household spending absorbed 88.9% of disposable income, leaving a savings rate of 11.4%.

On a per capita basis, household disposable income climbed to MAD 26,903, marking an 8.5% increase from the previous year. Despite a 6.1% rise in consumer prices, household purchasing power improved by 2.4 percentage points, recovering from a 3-point decline in 2022.

Consumption and Social Transfers

Household consumption expenditures reached approximately MAD 1 trillion in 2023, up from MAD 934 billion in 2022. Social transfers in kind grew by 4.1%, a slight deceleration from the 5.7% growth observed in 2022.

This robust economic performance underscores Morocco's ability to navigate global challenges while bolstering household purchasing power and national income, positioning the country for sustained economic progress.