The HCP noted that Morocco’s budget deficit is expected to jump to 4.5% of GDP in 2019, up by 0.8% from 2018.
Rabat – The High Commissioner for Planning (HCP) Ahmed Lahlimi Alami announced Tuesday, July 9, in Casablanca that Morocco’s economy is expected to grow by 3.4% in 2020 compared to 2.7% in 2019.
Alami explained, at a press conference dedicated to the presentation of the national economic situation in 2019 and its outlook in 2020, that the value-added of the primary sector will slightly increase by 4.6% instead of a decline of 2.1% in 2019.
He further noted that the non-agricultural sector is expected to increase by 3.2%, up by 0.4% from 2018. The increase is due to the improvement of secondary activities by 3.5%, up by 0.5% from 2018.
As for tertiary activities, Alami predicted a 3% growth, up by 0.3% from 2018.
In the secondary sector, processing industries are predicted to continue their recovery, growing by 3% in 2019.
The economist noted that the building and public works sector will grow by 1% in 2019, up by 0.9% from 2018. This growth is thanks to an increase in the number of infrastructure projects.
Alami added that the mining sector’s added value would continue to improve, forecasting a growth of 3.9% in 2019, down by 0.8% from 2018.
Market services are expected to grow by 3% in 2019, up from 2.4% recorded on average between 2013 and 2018. Services provided by public administrations are predicted to generate an added value of 3.4%, up by 0.9% from 2018.
The HCP projected a decline in inflation from 1.1% in 2018 to 0.8% in 2019.
Alami went on to add that Morocco’s budget deficit is expected to jump to 4.5% of GDP in 2019, up by 0.8% from 2018. He added that considering privatization revenues, the deficit will fall to 3.6% of GDP.
The national savings are predicted to experience a slight decline from 27.6% of GDP in 2018 to 27.3% in 2019. The savings are expected to remain lower than the gross investment which will experience a decline from 33.5% of GDP in 2018 to 32.6% in 2019.
The external trade balance of goods and services is expected to rise to 18.7% of GDP in 2019, up by 0.1% from 2018.
The overall public debt ratio will continue to notably increase to reach 81.3% of GDP in 2019 compared to 73.4% on average from 2010 to 2017, and an average of 60.2% from 2005 to 2009.
The overall debt ratio of the Treasury is expected to increase to 65.3% of GDP, up by 0.4% from 2018.