Moroccan Industry Shows Resilience as Production Rises Amid Pandemic

According to the latest indicators from Bank Al-Maghrib’s monthly business survey for July 2020, the Moroccan economy is still holding up. This is evidenced by the industrial activity which is improving from month to month, despite the exceptional situation the kingdom is going through.

Thus, the survey reveals that production recorded an increase, with a capacity utilization rate (CUR) which would have risen to 67% after being 64% in June, reports. As for sales, they increased both on the domestic and foreign markets, the same source indicates. The order book, which would have been at a level below normal, explains the drop in orders, the survey adds, noting that "by branch of activity, production and sales would have increased in all branches, with the exception of "chemicals and parachimicals" where sales would have stagnated".

The Moroccan central bank specifies that with regard to global orders, the observed decline reflects that of all branches of activity, except for "textiles and leather" and "mechanics and metallurgy" where they would have increased, noting that the order book would have been at a level below normal in all branches.

Furthermore, in terms of outlook, business leaders remain optimistic. For the next three months, they hope for an increase in production and a stagnation of sales. However, 34% of them admit to lacking visibility on the future evolution of production, while 43% regret the lack of visibility on sales. On the other hand, 44% say they have no visibility on the future evolution of activity. And for good reason. If the dynamic observed in production in the 7th month of the year 2020, (71% capacity utilization rate) is also visible in sales, it should be noted that exports are, on the other hand, declining, Bank Al-Maghrib points out. All of which leads bosses to anticipate a stagnation in production and sales.