A new HCP report on the institutional sector accounts for 2017 has shown that financial and nonfinancial corporations have notably contributed to the national wealth.
Rabat – In 2017, the financial and nonfinancial corporations contributed MAD 1063.3 billion to the gross domestic product (GDP), an increase by 4.9 percent compared to 2016.
According to the High Commission for Planning (HCP), the companies created 43.4 percent of the national wealth, 14.5 percent to the gross national income, 52 percent to national savings. The sector contributed by 56 percent to investments (gross fixed capital formation).
The contribution of households and non-profit institutions serving households (NPISHs) have generated 29.7 percent of the national wealth, contributed by 62.5 percent to the current gross national income, 29.3 percent of the national savings, and 25.6 percent in investments.
The power of household purchasing has increased by 2.3 percent compared to 2017 when it deteriorated by 0.6 percent.
Contribution of institutional sector to the GNI
The Gross National Income Available (GNI) has, for its part, increased by 4.7 percent in 2017, reaching MAD 1124.8 billion. The improvement in GNI is due to an “increase in gross disposable income of 6.9 percent for general government, 4.2 percent for households and NPISHs, and 3.2 percent for corporations (financial and non-financial).”
The business sector, which includes financial and nonfinancial corporations, is the largest producer of the national wealth and has showed a slight improvement in terms of contribution to the national output.
Its contributions improved from 43.1 percent in 2016 to 43.4 percent in 2017. The contribution of households and NPISHs, making up 29.7 percent of GDP, was up by 0.4 percent in 2017 compared to 2016.
Meanwhile, general government remained at 15.4 percent of GDP, decreasing slightly by 0.5 points compared to 2016. According to HCP, the decrease was due to the stagnant wages.
National savings amounted to MAD 306.9 billion in 2017
Morocco’s national savings, which currently stand at MAD 306.9 billion, improved by 6.7 percent in 2017 compared to 2016. The national savings stood at MAD 292.7 billion in 2016.
Financial and nonfinancial corporations contributed 52 percent to national savings, followed by households and NPISHs with 29.3 percent, and public administrations with 18.7 percent.
In the meantime, the country’s gross fixed capital formation (GFCF) was MAD 302.12 billion in 2017, a decrease by 0.3 percent from 2016.
A decrease in Morocco’s financing requirements
“To cover financial requirements, nonfinancial corporations have always relied on bank loans. The net flow of loans granted to these corporations reached MAD 38.5 billion in 2017,” the report noted.
For its part, the general government’s domestic debt has slightly declined with a net flow of MAD 24.4 billion.
The nation’s financing requirement stood at MAD 39.6 billion in 2017 and represented 3.7 percent of GDP compared to 4.3 percent in 2016.
The decrease is mainly due to a reduction of MAD 7.1 billion from the financing needs of the public administrations between 2016 and 2017, and an increase in household and NPISHs’ financing capacity by MAD 1.3 billion.
The increase of financing capacity extended to financial corporations by MAD 474 million.
Meanwhile, the nonfinancial corporations’ financing needs gew from MAD 53.3 billion in 2016 to MAD 58.5 billion dirhams in 2017.