Moroccan Economy Surges as Expats and Tourists Boost Summer Spending

In the eyes of economic experts, the sharp increase in household consumption spending not only strengthens economic growth in the short term, but it can also contribute to strengthening tourism infrastructure and improving the ability of the Moroccan economy to take advantage of tourist seasons, by investing the revenues generated by this activity in the development of tourism services and the improvement of the quality of local products. The increase in consumption spending during the summer holidays "has a positive impact on the various economic activities, whether related to the formal or informal sector; which therefore affects the economic growth rate, since consumption is one of the determinants of this growth, alongside investment and exports," assures Abderrazak El Hiri, professor of economic sciences at the University Sidi Mohamed Ben Abdellah in Fez, to Hespress.

According to his explanations, the need to spend during these holidays and to cover their expenses "pushes a number of families to borrow, which directly stimulates the lending and banking sector." The expert, however, points out that the increase in consumption spending during this period "could lead to a rise in inflation if it disrupts the balance between supply and demand; which can be observed through the increase in the prices of several services and goods during this period." He therefore calls on Moroccan families to "show rationality and manage their expenses in a way that does not affect their savings capacity and the expenses related to their obligations after the summer holidays, in particular the expenses of the back-to-school period."

The consumption of Moroccan households during these three months "can only be beneficial for the national economy, as it increases domestic demand for a range of goods and services; which allows many companies to make significant profits and thus create a certain number of employment opportunities," adds the economic expert Mohamed Jadri to the same site. And to add: the increase in consumption spending "stimulates the treasury, through a set of taxes, including value added tax and income tax."