HCP: Domestic Demand Rebounds by 8% in Morocco at the End of 2023

After sliding by 1.6% a year earlier, domestic demand in Morocco bounced back at the end of 2023, growing by 8.1%, according to data from the High Commission for Planning (HCP).

Rabat – After sliding by 1.6% a year earlier, domestic demand in Morocco bounced back at the end of 2023, growing by 8.1%, according to data from the High Commission for Planning (HCP).

Domestic demand reflects the sum of expenditures from households, investors, and the government. Robust domestic demand is pivotal for economic growth as it drives business revenue, employment, investment, and government revenue.

The HCP report indicates that the positive momentum in domestic demand contributed 9.4 points to national economic growth.

As a result, gross investment – expenditure made by businesses, governments, and households on capital goods – surged by 19.6% at the end of 2023, compared to a 4.1% drop a year earlier, contributing 6.6 points to economic growth.

Meanwhile, household consumption expenditure rose by 3% at the end of 2023, against a 1.6% drop a year earlier. Increased household consumption reflected positively on economic growth, contributing 1.9 points.

Likewise, spending from public administrations rose by 4.6%, up from 2.6% a year earlier, contributing 0.9 points to economic growth.

The report maintains that the rise in domestic demand drove the 4.1% growth in Gross Domestic Production (GDP) at the end of 2023 after the slim 0.7% recorded a year earlier.

Regarding prices, the report notes that the consolidated growth in GDP has brought down prices in the last quarter of 2023.

The country’s economy grew by 6.7% in the last quarter of 2023, up from 4.3% the previous year, resulting in a slowdown in the growth of prices. Inflation averaged 2.6% in the fourth quarter, down from 3% in the same period in 2022.