Morocco’s Domestic Demand Continues to Stagnate in 2023

Rabat – Morocco’s domestic demand continues to stagnate in 2023, putting in peril prospects of economic recovery.

After a moderate 0.1% increase in the first quarter of 2023, domestic demand slid by 0.2% in the second quarter, compared to a 1.6% drop during the same period in 2022, says a new report from the Higher Commission for Planning (HCP).

Domestic demand, a measure of expenditures from households, investors, and government, is considered a strong indicator of economic growth. 

Gross investments in Morocco continue to slow, falling by 3.1% in the second quarter of 2023, against an 8.4% decline a year earlier, the HCP report shows.

Meanwhile, household expenditures rose by 0.4% in the second quarter of 2023, while expenditure from public administrations increased by 3.1%.

Noting the progress of foreign trade, the HCP report shows that foreign trade in goods and services made a positive contribution to economic growth.

Exports of goods and services increased by 6.5% in the second quarter of 2023, while imports, especially imports of goods and services, increased by 1% over the same period.

The positive momentum led to a 9.4% drop in the trade deficit at the end of August. 

During the end of the first eight months of 2023, the monetary value of imports dropped by 3.9%, totaling MAD 472 billion ($45.9 billion), down from MAD 491 billion ($47.8 billion) a year earlier. 

Meanwhile, exports recorded an annual uptick of 0.2% at the end of August, rising to MAD 280 billion ($27.2 billion) from MAD 279.5 billion ($27.2 billion) in the same period in 2022.

The drop in the value of imports is mainly due to the drop in the country’s energy bill, semi-finished products, and raw products.

Read Also: Morocco’s Trade Deficit Narrows to 6.8% in First Half of 2023