Morocco has recorded a setback in its economic growth, estimating a 2.5% increase in 2019 compared to 3.1% in 2018. A new report from the High Commission for Planning (HCP) showed on June 6 that the net growth slowed down in 2019 due to two main factors. One is a 5.8% decline in volume of added value in the agriculture sector after an increase of 3.7% in 2018. The other is a 3.8% increase in the added value of non-agricultural activity, compared to 2.9% in 2018. The growth rate of gross domestic product (GDP) rose from 3.1% in 2018 to 3.5% in 2019 due to a 2% increase in net taxes of subsidies on products, compared to 4.6% in 2018.
The GDP at current prices increased by 3.9% in 2019 after 4.3% in 2018. The GDP generated an increase in the general price level of 1.3%, compared to 1.1% the previous year. The country’s domestic demand increased by 1.8% in volume last year after seeing a 4% increase in 2018, contributing to national economic growth by 2 points compared to 4.4 points. Household consumption expenditure also increased by 1.8% instead of 3.4% in 2018 with a contribution to growth with one point instead of two points. Spendings of public institutions recorded a growth rate of 4.7% in 2019 instead of 2.7% a year earlier, with a contribution to growth of 0.9 instead of 0.5 points.
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Gross investment registered a marked slowdown in its growth, moving from 5.8% in 2018 to 0.1% in 2019. Foreign trade in goods and services was beneficial to the country’s growth, standing at 0.5 points instead of -1.2 points in 2018. Exports of goods and services recorded an increase of 5.5% compared to 6% a year earlier, with a contribution to growth of 2.1 points instead of 2.2 points. Imports of goods and services, however, slowed to 3.3% after slowing to 7.4% the previous year, with a negative contribution of -1.6 points in 2019 instead of -3.5 points in 2018.
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The HCP shows that gross national disposable income increased only 3.6% in 2019 after 3.1% in 2018 to stand at MAD 1,203 billion (approximately $120 billion). This is the result of a 3.9% increase in the country’s 2019 GDP compared to 4.3% the previous year, and a 1.5% decrease in the rate of increase in net income received from the rest of the world compared to a rate decrease of 16.9% in 2018.
National reserves stabilized at 27.8% of the GDP, with a 3.5% increase in national final consumption in value instead of 4.4% recorded a year earlier. Gross investment (GFCF and inventory change) represented 32.2% of GDP compared to 33.4% a year earlier, the HCP concluded.
Kelechi Deca
Kelechi Deca has over two decades of media experience, he has traveled to over 77 countries reporting on multilateral development institutions, international business, trade, travels, culture, and diplomacy. He is also a petrol head with in-depth knowledge of automobiles and the auto industry