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After sliding by 1.6% a year earlier, domestic demand in Morocco bounced back at the end of 2023, growing by 8.1%, according to data from the High Commission for Planning (HCP). Morocco’s economy has improved in the fourth quarter of 2023, with Gross Domestic Product (GDP) growth reaching 4.1%.
After sliding by 1.6% a year earlier, domestic demand in Morocco bounced back at the end of 2023, growing by 8.1%, according to data from the High Commission for Planning (HCP). Morocco’s economy has improved in the fourth quarter of 2023, with Gross Domestic Product (GDP) growth reaching 4.1%. This is a sharp jump compared to just 0.7% growth in the same period of 2022, with the key driver behind the positive change being a surge in domestic demand, which rose by 8.1%.
Driven by domestic demand, this growth was achieved against a backdrop of controlled inflation and an increase in the national economy’s financing requirements, the HCP noted in an information note on the national economic situation in Q4-2023. Non-agricultural activities grew by 4.1% in volume terms, with particularly significant growth in manufacturing (8%) and industries like mining and quarrying (16.4%). The agricultural sector performed well, with a 5.8% increase despite a decline in fishing activity.
The growth rate in the service sector slowed to 2.8%, compared to 5.1% the previous year. Nevertheless, there were positive developments within services, with areas like transportation and storage improving. Investment also played a crucial role in the economic boost, as gross fixed capital formation, changes in inventory, and net acquisition of valuables—all factors contributing to investment—saw a remarkable increase of 19.6%.
The report showed that household spending rose by 3%, government spending increased by 4.6%, and growth in imports (13.3%) significantly outpaced the increase in exports (6.4%).
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Regarding prices, the report notes that the consolidated growth in GDP has brought down prices in the last quarter of 2023. The country’s economy grew by 6.7% in the last quarter of 2023, up from 4.3% the previous year, resulting in a slowdown in the growth of prices. Inflation averaged 2.6% in the fourth quarter, down from 3% in the same period in 2022.
