The result is mainly due to the drop in the volume of added value in the agriculture sector, excluding the fisheries sector.
Rabat – Morocco recorded a setback in its economic growth, estimating a 2.5% increase in 2019 compared to 3.1% in 2018.
A new report from the High Commission for Planning (HCP) showed on June 6 that the net growth slowed down in 2019 due to two main factors. One is a 5.8% decline in volume of added value in the agriculture sector after an increase of 3.7% in 2018. The other is a 3.8% increase in the added value of non-agricultural activity, compared to 2.9% in 2018.
The growth rate of gross domestic product (GDP) rose from 3.1% in 2018 to 3.5% in 2019 due to a 2% increase in net taxes of subsidies on products, compared to 4.6% in 2018.
The GDP at current prices increased by 3.9% in 2019 after 4.3% in 2018. The GDP generated an increase in the general price level of 1.3%, compared to 1.1% the previous year.
The country’s domestic demand increased by 1.8% in volume last year after seeing a 4% increase in 2018, contributing to national economic growth by 2.0 points compared to 4.4 points.
Household consumption expenditure also increased by 1.8% instead of 3.4% in 2018 with a contribution to growth with 1.0 points instead of 2.0 points.
Spendings of public institutions recorded a growth rate of 4.7% in 2019 instead of 2.7% a year earlier, with a contribution to growth of 0.9 instead of 0.5 points.
Gross investment registered a marked slowdown in its growth, moving from 5.8% in 2018 to 0.1% in 2019.
Foreign trade in goods and services was beneficial to the country’s growth, standing at 0.5 points instead of -1.2 points in 2018.
Exports of goods and services recorded an increase of 5.5% compared to 6% a year earlier, with a contribution to growth of 2.1 points instead of 2.2 points.
Imports of goods and services, however, slowed to 3.3% after slowing to 7.4% the previous year, with a negative contribution of -1.6 points in 2019 instead of -3.5 points in 2018.
The HCP shows that gross national disposable income increased only 3.6% in 2019 after 3.1% in 2018 to stand at MAD 1.203 billion (approximately $120 billion). This is the result of a 3.9% increase in the country’s 2019 GDP compared to 4.3% the previous year, and a 1.5% decrease in the rate of increase in net income received from the rest of the world compared to a rate decrease of 16.9% in 2018.
National reserves stabilized at 27.8% of the GDP, with a 3.5% increase in national final consumption in value instead of 4.4% recorded a year earlier.
Gross investment (GFCF and inventory change) represented 32.2% of GDP compared to 33.4% a year earlier, the HCP concluded.