Morocco’s Economic Growth Slows to 2.5% in 2019, HCP Reports

In an information note on the provisional national accounts for 2019, the HCP noted that this slowdown is the result of the combined effects of the 5.8% drop in volume of the value added (VA) of the agricultural sector (excluding fishing) and the 3.8% increase in the VA of the other non-agricultural activities.

This economic growth was driven by final consumption and external demand in the context of controlled inflation and a reduction in the financing needs of the national economy.

As for the growth rate of the gross domestic product (GDP) excluding agriculture, it stood at 3.5% in 2019 with a growth of 2% in net taxes on products against 4.6% the previous year. For the HCP, GDP at current prices, in this context, increased by 3.9% in 2019, thus showing a growth in the general price level of 1.3% instead of 1.1%.

Regarding domestic demand, the note indicated that it increased in volume by 1.8% in 2019 to support national economic growth with 2 points instead of 4.4 points the previous year. This year, household final consumption expenditure also increased by 1.8%, contributing 1 point to growth.

As for foreign trade in goods and services, it generated a positive contribution to growth (0.5 point), while exports of goods and services increased by 5.5% with a contribution to growth of 2.1 points. In addition, the financing needs of the national economy have eased, going from 5.6% of GDP in 2018 to 4.4% in 2019.