C. Bank Rates Morocco’s Business Climate “Normal”

72% of surveyed companies described Morocco’s general business climate in industry as “normal” in Q2 of 2023, while 20% described it as “unfavorable,” according to Morocco’s central bank (Bank Al-Maghrib – BAM).
79% deemed the “agri-food” sector “favorable,” while 18% said “unfavorable.” 78% and 13% respectively for the “textiles and leather” sector, and 61% and 32% for the “chemicals and parachemicals” sector.
In the “electrical and electronics” sector, all manufacturers reported a “normal” business climate, added BAM.
86% of manufacturers deemed supply conditions “normal,” with only 14% saying they are “difficult.” Specifically, in the agri-food sector, 79% reported “normal” supply conditions compared to 21% who found them “difficult.” Similarly, the mechanical engineering and metallurgy sector recorded figures of 73% and 27%, respectively. Meanwhile, in other sectors, most companies described supply conditions as “normal.”
In terms of employment, the number of employees remained stagnant in all sectors over the past three months, except for the “mechanical engineering and metallurgy” sector which experienced a decline.
In Q2- 2023, unit production costs rose across all industries except the electrical and electronics sector.
Regarding cash flow, 61% of companies reported a “normal” situation, while 38% described it as “difficult.”