Rabat - Morocco’s economy has seen strong growth throughout the first semester of 2017. Supported by a dynamic agricultural sector, the economy managed to overcome the lethargy of 2016, according to the latest note of the Directorate of Studies and Financial Forecasting (DEPF).
Rabat – Morocco’s economy has seen strong growth throughout the first semester of 2017. Supported by a dynamic agricultural sector, the economy managed to overcome the lethargy of 2016, according to the latest note of the Directorate of Studies and Financial Forecasting (DEPF).
After falling in 2016, agricultural value added rebounded sharply in 2017, particularly in relation to the notable increase in cereal production by 203 percent compared to the previous season. This performance benefited in particular from the favorable climatic conditions that marked the 2017 season.
“By component of cereal production, barley recorded the largest increase compared to the previous season, with a 366.2 percent increase year-on-year, followed by durum wheat by 166.2 percent and soft wheat by 166.1 percent,” notes the DEPF.
The performance of the export sector has also witnessed a strong fortification. At the end of July, the agricultural and agri-food sector saw its exports improve by 10.1 percent. This performance was mainly due to the good sales momentum in agriculture, forestry, and hunting by 19.5 percent and in the food industry by 9.2 percent.
On the industrial side, the sector seems to continue its dynamism, and for good reason. The external demand addressed to Morocco is in a progressive improvement, notably in the activities of the Cherifian Office of Phosphates (OCP).
“The production of phosphate derivatives, an important component of the chemical industry, grew by 35.8 percent at the end of May 2017, compared to a 7.7 percent increase in 2016,” notes the DEPF. The same applies to the energy sector; the electricity sector recorded an increase in national production of 2 percent in the first half of the year.
The breakdown is based on a 6.8 percent increase in ONEE production and 16.2 percent on that of the projects developed under the Renewable Energies Act 13-09. Private production, on the other hand, fell slightly by 0.9 percent.
In the construction and building sector, a strong recovery in cement sales was observed in July. The increase is estimated at 42.2 percent, after the sharp decline in June by 30.6 percent. “This improvement is attributable to the resumption of the activity of self-construction, as well as of the public works market,” says the DEPF.
In addition, Morocco’s new global businesses have performed well in exports since the beginning of the year. The DEPF also notes a good behavior of the tertiary activities. This is due to the good dynamics of transport, tourism, and telecommunications activities.
Household consumption was also set at a good level, due to the favorable dynamics of the various components of household income in a national economic context characterized by controlled inflation.
In terms of tertiary activities, tourism indicators continued to show favorable momentum at the end of June 2017, registering a 9.2 percent increase in arrivals and a 17.7 percent increase in overnight stays. Similarly, barometers in the transport sector maintained their favorable development, notably passenger air traffic and overall port activity, which rose by 11.5 percent and 10.1 percent respectively at the end of June 2017.
In the telecommunications sector, it was marked at the end of June 2017 by the 1.5 percent year-over-year increase in the mobile telephone network, following a 3.7 percent decline a year earlier, consumer interest in post-paid offers. In addition, the growth of the Internet park continues, with a 29.3 percent increase over the same period.