Sharp Contraction of Economic Growth in Morocco

  • Rabat, Kingdom of Morocco
  • 1 July 2020

The economic growth declined sharply in Morocco to 0.1 percent during the first quarter of this year, after stabilizing within the limits of 2.8 percent during the same period last year, reflecting the implications of the Coronavirus on the performance of the national economy, as Morocco was forced as a result of the spread of the Coronavirus in Morocco, to announce the quarantine and health emergency, which started on March 20, accompanied by the closing of borders and the cessation of many economic activities, which led many local and international institutions to expect a recession this year.

According to a report issued by the High Commission for Planning (governmental), the non-agricultural activities recorded a growth of 0.9 percent, while agricultural sectors fell by 5 percent, in a context characterized by low inflation and high financing needs of the national economy. It recorded an increase in domestic demand by 0.6 percent in the first quarter of this year, compared to 0.8 percent during the same period last year, which contributes by 0.6 percent to economic growth.

The final consumption expenditures for households slowed, as they declined from 2.7 percent at the level of growth to 1.4 percent, bringing their contribution to growth to 0.8 percent at the end of March, compared to 1.6 percent during the same period last year.

Source (The New Arab Newspaper, Edited)