National economy grows by 7.9%, recent HCP report says

The national economy grew by 7.9% in 2021, up compared to 7.2% recorded in 2020 due to the circumstances related to the COVID-19 pandemic, according to the High Commission for Planning’s (HCP) recent report.

This rebound comes as a result of a strong increase of 17.8% in agricultural activity, and a 6.6% increase in non-agricultural activities, said HCP.

Driven by domestic demand, this growth was achieved despite a backdrop of high inflation and a worsening of the national economy’s financing needs, added the same source.

Rebound in economic activity

In 2021, the primary sector recorded strong growth of 17.6%, after a decline of 7.1% recorded in 2020 due to a 17.8% increase in the agricultural activity, and a drop of 8.1%, in addition to a slight increase of 12.7% in fishing activities, up compared to 12.2% recorded a year earlier, specified HCP.

The value-added of the secondary sector increased by 6.8%, after a decline of 5.2%.

The improvement in the value-added comes as a result of an increase in Building and public works by 10.7%, up compared to 4.1% recorded previously, in addition, to a rise in Electricity, gas, water, sewage, and waste by 6.5%, up compared to 1.3% recorded earlier, and manufacturing industries up by 6.1%.

The value-added of the tertiary sector, on the other hand, showed an increase of 6.4%, after a decline of 7.9% in 2020. It was marked by the increase in the activities of :

-Accommodation and food, recording 31.6%, after a sharp decline of 54.6%;
-Transportation and warehousing, with 15.2%, after a decline of 28.5%;
-Research and development and business services, with 10%, after a decline of 13.4%;
-Trade and repair of vehicles, with 7.9%, after a decline of 6.6%;
-Financial services and insurance, with 4.6%, instead of 0.6%;
– Real Estate Services, with 3%, instead of a decrease of 0.8%;
– Education, health and social services, with 3% instead of 0.8%.

Under these conditions, and taking into account the 8.8% increase in taxes on products net of subsidies, the Gross Domestic Product (GDP) in volume recorded a growth of 7.9% in 2021, up compared to 7.2% recorded a year earlier, added HCP.

General price level up

At current prices, national GDP rose sharply by 11.4% in 2021, up compared to a 7.1% decline last year, resulting in a sharp rise in the general price level, going up from 0.1% in 2020, to 3.2% in 2021.

Recovery of domestic demand

Domestic demand grew by 9.1%, up compared to 6.5% recorded in 2020, contributing 9.8 percentage points to national economic growth, after 7.1 percentage points, said HCP.

Household final consumption expenditure rose by 8.2%, up compared to 5.6% recorded a year earlier, contributing 4.8 points to growth instead of a negative contribution of 3.3 points, added the same source.

Likewise, public administration’s final consumption rose by 5.6%, up compared to 0.5%, contributing 1.1 percentage points to growth, up compared to 0.1 percentage points recorded previously.

Gross investment (gross fixed capital formation; change in inventories and net acquisition of valuables) increased sharply from (-11.9%) in 2020 to (13.3%) in 2021, with a contribution to growth of (3.8) points instead of (-3.6) points, according to the same source.