Morocco’s economic dynamics in 2024 prove to be resilient despite the challenges the country faces. The various sectors are now showing notable and positive performances, affirms the Department of Studies and Financial Forecasts (DEPF) in its latest economic report for the month of April. Details. The economic situation note for the month of April from the DEPF reports economic dynamics marked by promising signs in the first quarter of 2024. Despite the persistent challenges linked to water stress, the Moroccan agricultural sector seems to benefit from recent rainfall, particularly in sectors other than cereal farming, recording an increase of 6.2% in its added value, specifies the same source. In addition, the fishing sector posted a remarkable performance in 2023, with an average increase of 16.7% in its added value, marking a strong rebound compared to the 9.8% decline recorded the previous year. As for the secondary sector, during the fourth quarter of 2023, the extractive sector recorded an increase of 16.4% in its added value, thus recovering vigorously after having suffered a decline of 15.7% the previous year. This performance helped to mitigate the decline in the sector’s added value, which averaged 2.1% at the end of 2023, compared to a contraction of 9.4% a year earlier. In the fourth quarter of 2023, the mining sector also showed remarkable growth in its added value (+16%), while the production of phosphates and derivatives jumped exceptionally (+39.6% and +34.8%, respectively) until the end of February. At the same time, the manufacturing sector recorded an 8% increase in its added value, after having stagnated a year earlier. The rate of utilization of productive capacities reached an exceptional level at the end of February 2024 (78.6%, up 5.8 points over one year). Electric energy, for its part, saw its production increase by 9.5% until the end of February, while cement sales increased by 7.5% over the same period, before experiencing a decline in March (-14%). In the tourism sector, arrivals increased by 12.8% until the end of March and overnight stays by 7.2% until the end of February, while passenger air transport recorded an increase of 16.9%. However, travel revenues fell by 6.7% until the end of February 2024. The telecommunications sector indicators for the year 2023 are positive, with an increase in mobile fleets (+5.6%) and internet (+7.6%). For its part, household consumption should recover at the start of 2024, supported by the slowdown in inflation (to +0.9% in March 2024 compared to 8.2% a year earlier), the dynamic of transfers from Moroccans living abroad and government measures to support purchasing power. Concerning the investment effort, it is consolidated with an increase in equipment expenditure in the General State Budget and an increase in receipts from foreign direct investments and equipment credits. The DEPF notably announced that the trade deficit fell by 12.4% and the coverage rate improved by 4.5 points to reach 63.9% at the end of February 2024. The budget deficit also decreased by 9.5% over the same period, mainly due to an increase in ordinary revenue (+16%) greater than that of overall expenditure (+10.9%). Finally, the rate of growth in bank loans has slowed, in particular due to the deceleration of loans granted to the non-financial sector. These contrasting economic trends show both the resilience and challenges that Morocco faces, but also the opportunities for growth and development that present themselves.
