The Moroccan economy records a growth of 3.8% as funding needs worsen
Follow-up
The Moroccan economy registered a growth rate of 3.8% in 2024, compared to 3.7% in 2023, according to the national accounts results revealed by the High Commission for Planning.
This improvement, according to the news memo on “The Economic Situation of 2024,” is attributed to the positive performance of non-agricultural activities, despite a decline recorded in the agricultural sector, within an economic context characterized by a noticeable rise in inflation and increasing funding needs for the national economy.
Agriculture puts pressure on the national economy
The agricultural sector, which is part of the primary sector, experienced a decline of 4.8% after recording a growth of 1.5% last year.
Fishing activities also saw a slowdown, with growth rates dropping from 6.9% to 2.6%, leading to an overall decline in the primary sector by 4.5%.
In contrast, the secondary sector witnessed a notable improvement, with an increase in its added value by 4.2%, down from 8% in 2023.
This growth, according to the “Benmoussa Commission,” is due to a strong recovery in extractive industries, which recorded a 13% increase after declining by 4.2%, along with improvements in construction and public works by 5%, and manufacturing industries by 3.3%. Furthermore, electricity and water activities rose by 2.6% after a significant decline of 10.6% last year.
Uneven recovery in service activities
Meanwhile, the tertiary sector experienced a slight slowdown, with its growth rate decreasing from 5% in 2023 to 4.6% in 2024.
Some service activities recorded a decline in their growth rates, particularly in the hotel and restaurant sector, which fell to 9.6% after a leap of 23.5% last year. Additionally, research and development and services provided to companies slowed to 4.2%, as well as information and communication to 3%.
Despite this slowdown in some branches, the news memo clarifies that other service activities have improved, notably transportation and storage, which increased to 7.4%, financial and insurance services that grew by 7.3%, trade and vehicle repair which rose by 4.1%, along with education, health, and social work services rising to 6.6%, and services provided by public administrations and social security increasing to 4.1%.
Overall, non-agricultural activities registered a growth of 4.5%, compared to 3.7% in 2023, supporting national economic growth in a context marked by financial pressures, according to the Planning Department.
Rising inflation
Regarding prices, the gross domestic product at current prices rose by 7.9% during 2024, after reaching 11% in the previous year, reflecting a general price level increase by 4.1%.
This economic performance comes amid increasing funding challenges and a continuing rise in inflation, highlighting the need to enhance the effectiveness of economic policies, control the deficit, and support the dynamics of investment and production, to ensure sustainable growth and align with the major structural projects taking place in Morocco.
Worsening need for financing the economy
The total available national income recorded a growth rate increase, moving from 10.2% in 2023 to 7.7% in 2024, affected by a rise in the gross domestic product value by 7.9% instead of 11% last year, and an increase in net income from the rest of the world by 4.9% instead of 1.2%.
National savings stabilized at 28.9% of the gross domestic product instead of 28%, relying on an increase in the growth rate of national final consumption value by 6.3% instead of 8.6% recorded last year.
Total investment (gross fixed capital formation, changes in inventory, and net acquisition of valuables) represented 30.1% of the gross domestic product instead of 29%, which exacerbated the need for financing the national economy, increasing from 1% of gross domestic product in 2023 to 1.2%.
