Morocco’s national economy expanded by 2.4% in the second quarter of 2024, slower than the 2.5% growth forecast a year earlier, according to a recent report from the Higher Commission for Planning (HCP).
The slower pace was driven by a sharp decline in agriculture, which was somewhat mitigated by Morocco’s robust domestic demand and industrial output.
Non-agricultural sectors continued to deliver solid results, expanding 3.2% year-over-year, driven by strong gains in construction and extractive industries.
However, a 4.5% contraction in the agricultural sector—exacerbated by a 14.7% decline in fishing—dragged on overall growth.
The economy is struggling to balance robust internal consumption with weak export growth and a worsening trade deficit, according to the report.
While Morocco’s primary sector — encompassing agriculture, fishing, forestry, mining — shrank by 5%, its secondary sector – encompassing manufacturing and construction — rebounded with a 3.8% increase, up from a 2.4% contraction a year earlier.
The extractive industry surged by 23.6%, a sharp reversal from last year’s 9.6% decline, as commodity prices and global demand recovered. Construction also posted a solid 3.6% gain after a year of contraction, while manufacturing industries grew by 2.9%.
The one weak spot in the industrial mix was utilities, where value-added fell 6.3%, reversing a 0.8% increase in Q2 2023.
Growth in the tertiary sector, which includes services, slowed to 3.1%, down from 5% in the same period last year. Hospitality and food services led the slowdown, expanding a mere 9.3% compared to a staggering 32.8% growth in Q2 2023, reflecting softer demand and a return to more normalized post-pandemic activity.
Transportation and warehousing also saw weaker growth, slowing to 5.1%, down from 6.9% last year, while financial services and insurance grew by a sluggish 0.9%, compared to 3.1% in 2023.
In contrast, Morocco’s public administration sector and vehicle trade provided some support for the economy, growing by 3.6% and 1.9%, respectively.