[Economics] Domestic Demand Slows in Morocco as Purchasing Power Takes Hit

[The GodFather]

 

 

Rabat - Domestic demand, measuring the sum of expenditures from households, investors, and government, in Morocco is slowing in 2022 on the backdrop of the lingering economic bottleneck.

National expenditures grew by a mere 4.3% at the end of the third quarter of 2022, almost half the growth rate recorded last year at 8%, according to data from Morocco’s state-owned economic intelligence agency, Higher Commission of Planning (HCP).

 

Expenditures from Moroccan households have especially slowed down, dropping from a 6.4% growth rate at the end of the third quarter of 2021 to only 2.4% a year later.

The trend also affected government expenditures, as their growth dropped from 5.7% to 4.1% over the first three quarters of 2022, the HCP data points out.

The downturn in domestic demand echoes a larger trend within Morocco’s economy. Following the multiple shocks that affected the international economy in the wake of the COVID-19 crisis and deadlock in the Ukraine war, Morocco’s economic growth is showing no signs of recovery. 

At the end of the third quarter of 2022, Morocco’s economic growth took a nosedive, dropping to 1.6%, down from 8.7% the previous year.

Besides international shocks, the drop in Morocco’s economic growth is due to the drought that gripped the country’s agriculture throughout 2022. The country’s rainfall-dependent agriculture contributes an average of 13% to Gross Domestic Product (GDP).

Amid the severe episode of drought, the added value of agriculture dropped by 15.1% compared to a 16.6% increase last year.Your support allows us to continue delivering quality journalism that is accessible to audiences across the globe. Every contribution, however big or small, is valuable for our mission and readers.

 

 

 

https://www.moroccoworldnews.com/2023/01/353324/domestic-demand-slows-in-morocco-as-purchasing-power-takes-hit