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Rabat – Morocco’s economic growth is estimated to have slowed to 1.8% in the third quarter of 2022, down from a 2% decrease from the previous one.
Over the third quarter, the added value of agriculture in the overall economy declined by 15.2%, according to a report from Morocco’s state-owned economic intelligence institution, the Higher Commission for Planning (HCP).
The added value of agriculture is expected to further decrease by almost 16% at the end of 2022, further slowing the country’s economic growth.
If expectations of a 3.3% growth in non-agricultural activities come true, they would bring Morocco’s overall economic growth up to 1.4% in the fourth quarter of 2022.
Other branches of the economy also faced the consequences of decreased activity, growing at 3.7% in the third quarter of 2022, down from 4.2% the previous quarter, the HCP report explains.
However, with an increase in non-agricultural activity of 3.3%, the national economy is expected to grow by 1.4% in the fourth quarter of 2022.
The slowing economic activities in Morocco come as a result of global crises such as the persisting Ukraine conflict and the sanctions imposed on Russia.
Contributing factors such as the sanctions are creating historically high prices that are weighing the global economy down.
Tightening monetary policies and raising central banks’ interest rates to wind down inflation is also expected to negatively impact global economic growth.
While the actual effect of raising interest rates might not fully materialize until two years later, the slowdown in economic activities is already showing its impact.
Experts are warning of a new looming global recession coming only two years after the COVID-19 outbreak that brought the global economy to a near standstill.
Read Also: S&P Global Rating: Morocco’s Economic Outlook Remains Stable
