Morocco's Economic Growth Slows to 2.5% in 2019, HCP Reports
The growth rate of the Moroccan economy has slowed down in 2019. It stood at 2.5% in 2019, compared to 3.1% in 2018, according to the High Commission for Planning (HCP).
In an information note on the provisional national accounts for 2019, the HCP noted that this slowdown is the result of the combined effects of the 5.8% drop in volume of the value added (VA) of the agricultural sector (excluding fishing) and the 3.8% increase in the VA of the other non-agricultural activities.
This economic growth was driven by final consumption and external demand in the context of controlled inflation and a reduction in the financing needs of the national economy.
As for the growth rate of the gross domestic product (GDP) excluding agriculture, it stood at 3.5% in 2019 with a growth of 2% in net taxes on products against 4.6% the previous year. For the HCP, GDP at current prices, in this context, increased by 3.9% in 2019, thus showing a growth in the general price level of 1.3% instead of 1.1%.
Regarding domestic demand, the note indicated that it increased in volume by 1.8% in 2019 to support national economic growth with 2 points instead of 4.4 points the previous year. This year, household final consumption expenditure also increased by 1.8%, contributing 1 point to growth.
As for foreign trade in goods and services, it generated a positive contribution to growth (0.5 point), while exports of goods and services increased by 5.5% with a contribution to growth of 2.1 points. In addition, the financing needs of the national economy have eased, going from 5.6% of GDP in 2018 to 4.4% in 2019.
