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Join on Telegram Rabat – Morocco’s national economy is forecasted to expand by 3.2% in the third quarter of 2024, up from 2.9% in the previous quarter, as domestic demand continues to recover and support for key sectors strengthens.
According to a recent report from the Higher Commission of Planning (HCP), the economy grew by 2.9% year-on-year in the second quarter, accelerating from the 2.5% growth recorded in the first quarter.
The positive momentum was largely driven by a stronger improvement in domestic demand, boosted by a favorable calendar effect on consumer spending.
Leading the charge is Morocco’s extraction industry which saw a robust 15.6% increase in value added year-on-year in the second quarter, propelled by a significant rise in external sales of non-metallic minerals and revived demand from local processing industries. This momentum is expected to continue into the third quarter.
Likewise, activity in the construction sector increased by 3% in the second quarter, compared to 2.5% in the first quarter, supported by a recovery in housing production and a notable 20% rise in cement sales.
Manufacturing Industries equally showed strong growth. The sector’s value added grew by 3.5% year-on-year in the second quarter, up from 2.1% in the first quarter. The acceleration was primarily driven by the chemical and construction-related industries.
Morocco’s service sector benefited from a rebound in domestic demand, with transport and accommodation activities gaining momentum during the second quarter. The growth was fueled by the convergence of foreign and national religious holidays, which spurred consumer spending.
Despite the overall positive economic performance, the agricultural sector continued to struggle. The value added in agriculture fell by 4.9% year-on-year in the second quarter, a sharp contrast to the 1.5% increase recorded in the same period last year. This decline was mainly due to the severe drought’s impact on major crops.
Read Also: Morocco’s Economic Growth Slows to 2.5% in 2024 Amid Agricultural Decline
