Morocco’s economy experienced a slowdown in growth at 2.5% in the first quarter of 2024, significantly less than the 3.9% for the same period the year before, according to Morocco’s Statistics and Forecasts Office (HCP).
The decrease, outlined in the national accounts for Q1-2024, reflects a shift driven primarily by domestic demand amid controlled inflation and enhanced financing capabilities.
Although non-agricultural sectors saw a modest increase of 3.2%, agricultural activities contracted by 5%, marking a significant downturn.
Agriculture’s value-added volume, adjusted for seasonal fluctuations, declined by 4.3% in Q1-2024, a sharp reversal from the 1.7% growth observed in the corresponding quarter of the previous year.
This decline was attributed to a substantial decrease in agricultural output by 5%, contrary to an expected rise of 2.1%, and an unexpected increase in fishing production by 10%, instead of a projected decrease of 4.8%.
In contrast, industry saw an upturn with a 3.6% increase, compared to a 0.4% decline in Q1 of the previous year. This growth was driven by a slowdown in manufacturing to 2.1% growth, down from an anticipated 3%, along with unexpected increases in extraction industries (17.7%) and utilities (electricity, gas, water, sanitation, and waste) (3%), as well as construction and public works ( 2.5%).
The tertiary sector of tourism and services recorded a growth rate slowdown from 6% to 3% in Q1-2024. This deceleration was marked by reduced growth in financial services and insurance to 3.9% from 7.3%, research and development/business services to 3.6% from 4.3%, transportation and storage to 3.4% from 8.7%, education, health, and social services to 2.9% from 4.2%, real estate services to 2.1% from 2.7%, accommodation and food services to 1.9% from 55.8%, and information and communication to 1.3% from 3.1%.
Non-agricultural activities showed a slowdown from 3.9% growth in Q1 of the previous year to 3.2% in Q1-2024.
Considering a 5.5% increase in net taxes on products, Morocco’s Gross Domestic Product (GDP) in volume expanded by 2.5% in Q1-2024, compared to 3.9% a year earlier. At current prices, GDP grew by 3.8%, reflecting a general price level increase of 1.3%.