Morocco’s GDP growth accelerated to 4.3% y/y in the second quarter of the year from 4.1% y/y in Q1 and a mild 2.6% annual expansion in Q2 2014, the High Council Planning (HCP) said in a provisional estimate. A low prior-year base coupled with strong output of the value-added agriculture sector largely offset a still subdued activity in the non-agro sector.
Morocco’s GDP growth will accelerate to 4.6% in 2015 underpinned by a rebound in agricultural activities, strong growth in high value-added exports (in newly developed sectors such as automobiles, aerospace and electronics) and lower oil prices, the EBRD forecasts.
The value-added agriculture sector, which employs nearly 40% of Morocco’s labour force, climbed 14.9% y/y in Q2, speeding up from 12.0% annual hike in the previous quarter, and reversing a 3.6% y/y contraction in Q2 2014, amid favourable weather conditions that boosted Morocco's agricultural output.
Excluding agriculture, Morocco's export-oriented economy grew a lukewarm 1.6% y/y in Q2, slowing from 2.0% y/y in Q1 on lower phosphate output. The hotels and restaurants sector remained in the red, falling 3.4% y/y in Q2, worsening from a 1.0% annual drop in Q1.
Late in September, Morocco’s central bank maintained its benchmark interest rate unchanged at 2.5%, underscoring the subdued medium-term CPI inflation outlook at 1.8% in 2015 and an average of 1.5% price growth over the next six quarters.
The central bank remains upbeat on the 2015 GDP outlook despite cutting this year’s economic growth projection to 4.6% from the previous 5.0%. The 2015 GDP growth will, however, accelerate from last year’s 2.4%. Growth will be supported by strong agriculture output that will mitigate the still subdued non-agro growth at 3.3% in 2015. In 2016, Morocco’s GDP growth will brake to 2.4% on cooling agriculture output, according to the central bank.
In nominal terms, Morocco’s GDP grew 5.4% y/y to MAD242.7bn in Q2, slowing from a 5.9% annual rise in Q1.
The Al Dahra Group of the United Arab Emirates (UAE) wants to purchase nearly 60,000 hectares of agricultural land along the Danube River, develop a logistics company including water and road ... more
The United Arab Emirates’ (UAE’s) global port operator Dubai Ports World on March 24 signed two framework agreements to acquire stakes in Kazakhstan’s two Special Economic ... more
The odds on the Trump administration attempting to kill the Iran nuclear deal substantially shortened on March 13 with the firing-by-tweet of US Secretary of State Rex Tillerson and his replacement ... more