Morocco’s Economy Poised for Growth as Purchasing Power Rises, Ministry Reports

According to the data from the May economic situation note issued by the Ministry of Economy, "the assessment of the national economic situation based on the latest available cyclical indicators indicates that the economic situation is heading towards a certain dynamic recovery". "The good agricultural season reinforces positive expectations, particularly with a very good cereal production up 206% compared to 2020, reaching 98 million quintals," said MEFRA.

According to the same source, the current agricultural season is the best of the last ten years, as it was characterized by favorable climatic conditions and good rainfall, the cumulative average of which reached 291 mm at the end of last April, representing an increase of 32% compared to the previous agricultural season.

Regarding non-agricultural activities, good results have been obtained. This is evidenced by the indicators of the construction and public works sectors and certain branches of the industrial sector, with a lower level in the electricity sector. At the level of foreign trade, the official indicators until the end of March indicate that the coverage rate of exports to imports improved by 5.7 points. The trade deficit decreased by 11.2%, thanks to the continuous increase in exports of 12.7%. There is a moderate increase in imports of 2.6%.

Regarding public finances, the department of Mohamed Benchaâboun indicates that the increase in current expenditure at a rate higher than ordinary revenue, in addition to the 57% drop in the Treasury’s accounts, are factors that have led to an exacerbation of the budget deficit of 16 billion dirhams at the end of last April.

The indicators related to the financing of the economy indicate that "there is a slowdown in the growth of bank loans at the end of March of 3.3% against 5.3% in the same period last year, in particular those granted to the non-financial sector, which increased by 3.1% against 6.4% last year".