HCP report: Morocco's economic growth up 2.8% in Q3-2023

Morocco’s economic growth experienced a notable upswing during the third quarter of 2023, reaching 2.8%. This marks a significant improvement from the 1.7% recorded during the same period in 2022, according to the latest report from the Kingdom’s statistics authority (HCP, Haut-Commissariat au Plan ).

The HCP attributes this growth to a 2.7% increase in non-agricultural activities, a slight dip from the 3.3% growth observed in the previous year. Additionally, the agricultural sector witnessed a robust 5.7% growth, as outlined in the HCP’s comprehensive report on the national economic situation for Q3-2023.

Domestic demand emerged as a driving force behind this economic upturn, demonstrating resilience in the face of high inflation and a reduction in the financing needs of the national economy, according to sources.

Delving into the specifics, the HCP’s analysis reveals that the volume-adjusted value added of the primary sector saw a remarkable 8.9% increase in Q3 2023, a stark contrast to the 13.8% decline in the same period of 2022.

This positive shift is attributed to a 5.7% increase in agricultural activity, compared to a 13.1% decrease the previous year, and an impressive 80.7% surge in fishing activity, up from a 25.6% decrease.

Conversely, the value added of the secondary sector showed promise with a 0.5% increase, steering clear of the 1.1% decrease observed in the third quarter of the previous year.

This growth is linked to increases in the value added of electricity and water activities (2.1% instead of a 3.5% decrease), manufacturing industries (1.1% instead of 2%), and construction and public works (0.5% instead of a 5.1% decrease).

However, the growth was tempered by a 3.7% decrease in the value added of the extraction industry, though significantly less than the 10.1% decrease seen in the same period the previous year.

Meanwhile, the tertiary sector, while still growing, recorded a slight slowdown, dropping from 5.9% in Q3 of the previous year to 3.1% in Q3 2023, according to the report.

This slowdown was particularly evident in accommodation and restaurant activities, growing by 11.2% instead of the previous 57.6%, education, health, and social activities at 3.5% instead of 4.9%, research and development and services to businesses at 3.2% instead of 6%, and financial services and insurance at 2.2% instead of 9%, among other sectors.

In the broader context, considering an increase in taxes on net product subsidies of 0.7% instead of 4.8%, the Gross Domestic Product demonstrated a robust increase of 2.8% in volume during Q3 2023, compared to the 1.7% recorded in the same period the previous year.