Morocco's national economy drops 1.6% in Q3-2022, HCP

The High Commission for Planning (HCP) said Friday that the national economy in the third quarter of 2022 showed a clear slowdown dropping by 1.6% instead of the 8.7% recorded in the same quarter last year.

Non-agricultural activities showed an increase of 3.6%, while those of the agricultural sector recorded a drop of 15.1%, added HCP.

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

Sharp slowdown in economic growth

The seasonally adjusted value added of the primary sector dropped by 16.2% in the third quarter of 2022, after an increase of 14.3% in the same quarter last year, said HCP.

The decline is explained by the drop in the value added of agriculture by 15.1%, after an increase of 16.6%, and that of fishing by 33.2%, up compared to a decline of 20.1%, added the same source.

The added value of the secondary sector experienced a clear slowdown in its rate of growth from 5.1% during the same quarter of the previous year to 0.4%, further stated the same source.

Rising inflation rate

At current prices, GDP rose by 7.6%, down compared to 13.8% recorded a year earlier, resulting in an increase in the general price level of 6% instead of 5.1%.

Wide slowdown in domestic demand

Domestic demand showed a clear slowdown from 8% in the same quarter of the previous year to 4.3%, contributing 4.7 points to the national economic growth instead of 8.7 points.

Additionally, household final consumption expenditure experienced a slowdown in its growth rate from 6.4% in the third quarter of 2021 to 2.4% with a contribution to the growth of 1.4 points instead of 3.8 points.

The final consumption index showed an increase of 4.1% instead of 5.7%, with a contribution to the growth of 0.8 points, down compared to 1.1 points recorded previously, according to the same source.