Morocco’s GDP growth accelerates to 5.1% y/y in Q2 2013 on strong agro output

By bne IntelliNews October 1, 2013

Morocco's GDP grew 5.1% y/y in April-June 2013, quickening from 3.8% in Q1 and 2.7% the year before on strong agriculture output which offset slowing non-agriculture growth, the High Council Planning said on October 1. In nominal terms, Morocco’s GDP expanded 6.9% y/y to MAD 219.2bn (USD 26.6bn).

Morocco’s GDP growth should rise to 4.5% in 2013 from an estimated 3.0% the year before, the IMF said in its latest World Economic Outlook published in April. The government, however, forecasts a 4.8% GDP expansion this year, up from 2.7% in 2012. A recovering tourism and services income, better agriculture output and lower oil prices, might help Morocco achieve its GDP growth target in 2013.

The value-added agriculture output, which employs some 40% of Morocco’s labour force, grew 22.8% y/y in Q2 in seasonally-adjusted terms compared with a 9.5% y/y contraction a year earlier. A low prior-year base also played a role. The agriculture output will expand 6.1% in 2013 due to an expected better harvest season, the statistics office HCP has recently said.

Excluding agriculture, Morocco's export-oriented economy grew 2.5% y/y in Q2 (1.9% in Q1), slowing down from a 4.5% y/y increase a year ago. A sluggish mining output (up 0.1% y/y) and weaker EU demand dented non-agro growth over the period.

The manufacturing sector’s output growth braked to 0.8% y/y in Q2 from 1.4% the year earlier but inched up from 0.5% in January-March. The construction sector and public works shrank 4.6% y/y in Q2 compared with a 3.5% growth the year before. The government has cut capital spending to help redress the budget deficit. The utilities sector shrank 0.9% over the period on favourable weather conditions that cut energy demand. Trade (up 3.7% y/y) and restaurants and hotels (up 5.1%) helped support the GDP growth in Q2.

Households consumption grew 4.0% y/y in Q2, speeding up from 2.2% the year before also helping boost the GDP growth. 

Related Articles

Lebanon becomes European Bank for Reconstruction and Development shareholder

Lebanon has become the fifth member country from the Southern and Eastern Mediterranean (SEMED) region to join the European Bank for Reconstruction and Development (EBRD), becoming a shareholder with ... more

Evolution Equity Partners closes $125mn cybersecurity-focused fund

Evolution Equity Partners announced on 17 July the final closing of a new fund with total capital commitments of $125mn to make investments in cybersecurity and next generation enterprise software ... more

US lifts laptop ban on Turkish Airlines flights as of July 5

Passengers boarding an early morning July 5 Turkish Airlines (THY) flight to John F Kennedy International Airport in New York were allowed to include laptops and electronic devices larger than a ... more