Morocco’s manufacturing production growth brakes to 0.6% y/y in Q2

By bne IntelliNews September 14, 2015

Falling output of refineries, leather, minerals, metals, machinery and electrical appliances cut Morocco’s manufacturing production growth to just 0.6% y/y in Q2 from a 1.4% annual expansion in the preceding quarter, data from the statistics office HCP showed. The print is relatively bad news for the government seeking to boost the value-added exports of new industries and in turn spur GDP growth.

Morocco’s manufacturing output in Q2 was dampened by faltering refineries production (down 5% y/y), metals (down 3.2%), leather, shoes and travel articles (down 6.1% y/y) and electrical appliances (down 3.8% y/y) among others.

Manufacturing output, however, remained afloat due to positive growth in the passenger cars sector (up 12.3% y/y), wood items (up 2.3% y/y) and papers (up 2.3%) among others.

The mining production also remained in the red, shrinking 6.2% y/y in Q2 on lower value-added phosphates output.

The electricity sector’s production grew 6.0% y/y in Q2 despite slowing from a 10.8% annual hike in Q1.

Strong agriculture output outweighed a still anchored expansion in the non-agro economy, fuelling Morocco’s GDP growth to 4.1% y/y in the first quarter of the year from 2.8% annual rise a year earlier and 1.8% y/y growth in Q4 2014.

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.

Excluding agriculture, Morocco's export-oriented economy grew a mild 2.0% in Q1. The mining output shrank 10.9% y/y on lower phosphate output while the hotels and restaurants sector dropped 1.0% y/y on weak tourism activity.

Related Articles

Dubai’s ICD reportedly interested in Montenegro’s Tivat airport

Investment Corporation of Dubai (ICD), which acquired a controlling stake in Porto Montenegro last year, reportedly is interested in ... more

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

Dismiss