Morocco’s Construction Sector Booms Despite Ongoing Challenges

Construction is one of the flagship sectors driving the economic outlook for the fourth quarter. This is the result of the business survey by the High Commission for Planning (HCP) reported by L’Économiste. "The expected increase in activity reflects strong demand, fueled by infrastructure projects. This sector is also distinguished by its ability to create jobs, in contrast to other declining sectors," HCP notes.

However, this upturn hides persistent vulnerabilities, particularly supply problems with raw materials, reported by 16% of companies. The pressure on cash flow, considered "difficult" by 35% of business leaders, is also mentioned.

In addition to construction, other flagship sectors such as manufacturing industry also face major challenges. While expectations indicate an increase in production, driven by flagship branches such as automotive, chemicals and non-metallic mineral products, this promising recovery "is mitigated by an anticipated decline in the clothing, textile and beverage industries."

"Beyond production volumes, the supply challenge remains important. In the third quarter, 34% of manufacturing companies reported difficulties in accessing raw materials, particularly imported ones. This structural dependence exposes the sector to external risks related to fluctuations in international markets," analyzes the daily. It also notes that "the extractive industry should also benefit from an upturn, mainly thanks to a continuous increase in phosphate production."