Rabat- Morocco’s economy has experienced a recovery as a result of the agriculture and non-agricultural sectors, according to Morocco’s Higher Commission for Planning (HCP).
The national economy experienced a recovery of 12.6% in the second quarter of 2021, the HCP report said.
The HCP outlines the development by a 19.3% increase in agricultural added-value and a rebound of 11.7% in the non-agricultural sector.
The report said the agriculture sector received back its dynamism at the beginning of 2021. The increase has been attributed to favorable climate conditions for crops, particularly cereals grains.
The HCP forecasts a production exceeding 98 million quintals, benefiting from a yield increase of 13.4 quintals per hectare on average compared to 2020.
“The growth of other crop production is also said to have accelerated, particularly in the Sais and Middle Atlas areas, against the backdrop of reduced irrigation costs and industrial development. more sustained market gardening and fruit crops,” HCP said.
Morocco experienced a relatively dry season last year. In 2021, Morocco’s Ministry of Agriculture forecasted a prosperous agriculture season this year due to the rainfalls that were recorded during the 2020/2021 season.
According to the Ministry, the rainfalls this year have improved soil conditions that support plant growth, facilitated maintenance work for farmers, and significantly improved dams’ reservoirs and groundwater levels for agricultural use.
The easing of COVID-19-induced lockdown also contributed to the recent development, emphasizing that the services sectors contributed 5.3 points to the rise in GDP instead of -1.4 points quarter earlier.
The positive indicators are due to the “good orientation of trade, transport and catering activities,” HCP explained.
Growth in secondary activities also accelerated, boosting GDP growth to +3.5 points instead of +0.5 points a quarter earlier.
Industrial added value also experienced an increase of 22.8% af against +1.6% a quarter earlier. The development has been prompted by the recovery of manufacturing sectors.
Subsequently, construction activities have recovered after experiencing a stagnation in the first quarter of 2021. The industry marked an increase of 9.6% as a consequence of the improvement in real estate transactions.
Meanwhile, mining added value experienced a decline in the second quarter of 2021. The sector registered an increase of 1.2% year-on-year after a rise of 5.2% a quarter earlier.
HCP also noted a “strong competition” from Asia in the exportation of raw phosphate.
The report emphasized a slight recovery in competition due to a persistent demand from local chemical industries.
“The surge in international prices of sulfur and ammonia have resulted in an increase in the production costs of local processing industries, but their activity would have strengthened by 4.2% year-on-year, thanks in particular to the strengthening of exports of phosphate derivatives destined for African countries and Latin America,” the report explained.
The report said the production of non-metallic minerals have increased by 3.1% in the second quarter of 2021. Meanwhile, the production of metals has marked an increase of 3.6% in the wake of the continued recovery of international prices for copper and zinc, among others.
