Moroccan industry is showing promising signs of recovery and is nearing its pre-pandemic activity levels, according to a recent study from Morocco’s High Commission for Planning (HCP).
The study, based on interviews with Moroccan business owners, calculated the level of industrial activity in Morocco during the third and fourth quarters of 2020.
During the third quarter, between July and September, various industrial sectors in Morocco showed positive indicators.
Extractive industries reached the same level of activity as the period before the COVID-19 pandemic, despite a decline in jobs in the sector.
The energy industry, notably electricity and gas production, witnessed a similar evolution in the third quarter of 2020, increasing the capacity utilization rate in the sector to 92%.
Capacity utilization rate measures the extent to which a country is using its installed productive capacity. High rates usually mean that demand is also high, indicating a healthy industry.
Morocco’s manufacturing industries and environmental industry also recorded a relatively high capacity utilization rate of 76% in the third quarter.
The construction industry is the only sector that is yet to reach similar activity to the levels recorded before the pandemic. Its capacity utilization rate stood at 62% between July and September.
According to HCP, the majority of businesspeople in Morocco are hopeful that national industry will continue on its upward trend during the fourth quarter of 2020.
Manufacturing, extractive, and environmental industries are expected to witness an increase in activity.
Meanwhile, companies operating in the energy and construction sectors are expecting their production to record a slight decline.