Morocco’s Economy Poised for Rebound in 2020 After Slow Growth Year

Morocco recorded in 2019 one of the lowest growth rates since 2007, which stood at 2.3% of gross domestic product compared to 3% a year earlier, said the department of Ahmed Lahlimi. According to the same source, the 2019 fiscal year was marked by the slowdown in domestic demand as well as the decline in commodity prices internationally.

Showing a deceleration to 2.5% in 2019, domestic demand limited its contribution to economic growth to 2.7 points, while it participated in it at a rate of 4.3 points a year earlier, indicates the same source, which specifies that domestic demand would have driven economic growth while external demand would have weakened it.

Despite the slowdown in agricultural activity and the near-stagnation of MRE transfers, household consumption has, for its part, remained on its momentum, marking a 3.3% increase, i.e. a 2-point contribution to growth, the same source said.

As for the economic outlook, it looks promising, but depends on several parameters, including rainfall, the provisions announced in the 2020 Finance Act in terms of taxation, investment and operating expenditure, as well as the improvement in global demand addressed to Morocco and the expected recovery of transfers from Moroccans residing abroad and foreign direct investment, the HCP argues. Furthermore, the HCP forecasts a 3.5% increase in gross domestic product in 2020.