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Join on Telegram Rabat – Morocco’s economy is expected to have grown by 1.2% in the first quarter of 2022, compared to the same period the previous year.
Despite a 12.1% fall in agriculture activities, Morocco’s economic growth prospects remain positive overall, according to preliminary data from Morocco’s Higher Commission for Planning (HCP) as reported by Morocco’s Press Agency (MAP).
The projected positive growth is driven by a 3.3% growth in the non-agriculture sector in the first quarter of 2022, supported by the post-pandemic economic recovery.
Economic growth during the second quarter will average at 1.8%, compared to 15.2% a year before.
China’s decision to lock down some factories and ports in an effort to contain the spread of COVID-19 is likely to cause further disruptions to the global supply chain, and the global economy will likely contract again, HCP said.
The Ukraine crisis is set to further aggravate disruptions in the global supply chain, as production slows down in Europe.
Skyrocketing energy and food prices are expected to impact inflation rates worldwide.
The HCP has projected an average yearly increase of 79.9% in energy prices, and food prices are expected to rise by 24.5%, primarily due to rising grain prices.
With rising food and energy prices, inflation is set to have reached 7.7% in the United States and 6.1% in the Euro Zone during the first quarter of 2022, compared to the first three months of 2021.
The HCP also projects a 6.6% year-on-year growth in Morocco’s imports in the first quarter of 2022.
Underpinning the positive progress in exports is an expected 61.5% increase in aeronautic exports and a 28.2% rise in textile exports, the report says.
Import volume is to have grown by 37% over the same period, against 2.6% a year before.
The increase is driven by the drastic 88.8% rise in energy prices.
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