Morocco’s Economy Shows Signs of Recovery with 0.5% Growth in Q1 2021

In its Q4-2020 business point and outlook for Q1-2021, the HCP justified this growth by a 0.5% decline in value added excluding agriculture and a 10.8% rebound in agricultural value added. The coming quarters should also see an acceleration of overall economic growth thanks to a base adjustment effect related to the decline in activity during the lockdown period.

As for non-agricultural activities, they should continue their recovery with a 0.5% decline in the first quarter against a significant recovery in industrial activity in the secondary sector. As for construction activity, it would continue to suffer from the weak demand addressed to residential real estate. As for electricity production, it should also see a gradual recovery of industrial activities.

A moderate recovery of tertiary activity should continue in trade, transport and catering against a revitalization of activity in non-market services, the same source continues.

As for agricultural activities, they should show a significant recovery, thanks to an abundant and widespread winter rainfall, indicates the HCP, which specifies that in annual variation, the agricultural value added should record an increase of 10.8%, contributing +1.2 points to overall economic growth. Unlike the 2020-2021 season which had a very difficult start, the return of the rainy season with many precipitations should augur a rather promising 2021-2022 season.