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Rabat – Morocco’s national economy is recovering from the COVID-19 impact amid an ongoing surge in the prices of raw materials and energy, the Ministry of Economy and Finance said on Tuesday.
“Analysis of available economic indicators shows a generally favorable trend in national economic activity at the start of 2022, despite agriculture being negatively affected by a lack of rainfall,” Morocco’s Department of Financial Studies and Forecasts (DEPF) said in its report of the country’s economy this month.
Secondary activities recorded a recovery from COVID-19 losses, since the start of the year with the construction sector and electrical industry returning to pre-pandemic levels as external demand for OCP materials increased.
Moroccans are also continuing to spend money in the country’s economy, due to a 2.5% increase in the credit given to consumers in January, the continuation of government support for business, and the significant transfers of money from Moroccans residing abroad.
Read Also: BCP Covered 38% of Morocco’s COVID-Relief Fund for Businesses in 2021
Moroccan exports rose by just under a quarter at the end of January 2022, driven mainly by an increase in exports of phosphate-based products, agricultural goods, textiles, aeronautics, and goods from the electronic sector. However, rising import costs still mean the country is sitting on a trade deficit.
Imports grew by 40% at the end of January, widening the trade deficit to 75%.
Banks recorded a 3.4% growth in loans at the end of January, while the stock market indices MASI and MSI 20 respectively dropped by 5.9% and 6.7% at the end of February.
Read Also: World Bank: Only 17% of Moroccans Use Digital Payment Services
