Rabat – Morocco’s economy changed by 3.7% compared to 4.2% in the last quarter of 2024.
After For the high planning commission (HCP), the slowdown came when agricultural activity declined, while non -agricultural sectors made modest profits. The economy continued to be based on domestic demand, but increasing financing needs and an extended trade deficit caused new obstacles.
Mixed performance between the sectors
Agriculture recorded a contraction of 4.9%, which reverse the growth of 1% last year. However, the fishing sector achieved back rampart of 0.8% in late 2023 after 19.2%.
The secondary sector slowed to 4.9%compared to 6.9%in the same period of 2023. The slowdown mainly came to the extraction industry, which rose 6.5%instead of 16.1%, and the production, which increased by 3.7%, of 7.4%. However, construction and public work accelerated to 7%compared to 2.9%, while the supply companies, including electricity, gas, water and waste management, rose from 3.6%to 5.7%.
The services rose by 4.2% and exceeded 3.3% compared to the previous year. Tourism and hospitality recorded a great increase of 12.8% compared to 8.2% at the end of 2023. Public administration and social security services rose 3.9%, compared to 1%, grew the repairs and vehicle repairs by 3.1%compared to 1.8%. Education, health and social work grow by 2.7%compared to 1.5%.
Some service industries showed weaker results. Company services, including research and development, rose by 5.3%compared to 5.9%. Transport and storage slowed down to 4.6%compared to 5.3%, while financial and insurance services rose by 4.3%compared to 5.5%. Telecommunications fell to 2%compared to 4.3%, and real estate services fell from 3.3%to 1.9%.
Shifting of demand and investments
Domestic demand rose by 7.6%, something below the 8.1%listed in the previous year. The contribution to total growth went back from 9.4 to 8.9 percentage points.
Household consumption rose 4.1% compared to 5.1% in the previous year and contributed 2.6 points to growth instead of 3.2. However, public expenses for goods and services rose by 4.8%compared to 3%with a contribution of 0.9 points compared to 0.6.
Investments, including solid capital, stock fluctuations and net acquisitions of valuables, rose by 15.3% compared to 16.6% in the previous year, which was 5.4 points for growth instead of 5.5.
Trade deficit is expanding
Both exports and imports increased drastically. Imports rose by 15.6%compared to 12.5%, which led to a negative contribution of 9 points, worse than the 7.7 points that were recorded a year earlier. Exports rose by 9.2%, which increased an increase of 5.5%, which contributed 3.8 points instead of 2.5.
The trade balance remained an economic growth. The network Contribution External trade was at -5.2 percentage points, unchanged compared to the previous year.
Inflation and increasing financing needs
The gross domestic product (GDP) at current prices rose by 6.2% compared to 8.4% in late 2023 in the fourth quarter.
Nevertheless, Morocco’s financing needs grew. Since GDP rose by 6.2% and the net result from abroad rose by only 0.9%, total income was 5.8% compared to 8.7% in the previous year.
The final consumption expenditure rose by 4.9%of 5.7%, while national savings corresponded to 28.8%of GDP, which increased slightly after 28.2%. In the meantime, the total investment accounted for 32% of GDP compared to 29.6%. This expanded the financing gap because the economy in Morocco had to external financing gaps, which corresponds to 3.2% of its GDP, compared to 1.4% in the previous year.
The Morocco’s economy continued to grow, but faced the headwind. A slower expansion in the most important sectors, increasing financing needs and an extended trade deficit found the upcoming challenges. Inflation showed signs of control, but external imbalances could endanger future stability.
