Domestic demand in Morocco experienced a notable surge in the second quarter of 2024, showing a remarkable 5% increase compared to a mere 0.1% rise during the same time last year. This significant rebound contributed 5.2 percentage points to Morocco’s overall economic growth, a stark contrast to the almost negligible 0.01-point increase seen in the previous year.
Here are the key highlights from the report:
– Domestic demand, which encompasses household, investor, and government spending, serves as a crucial indicator of economic health.
– Consumer spending played a pivotal role in the country’s economic recovery, with household final consumption expenditures rising by 3.1%, compared to only 0.6% a year earlier. This translated to a contribution of 1.7 percentage points to GDP growth, a substantial increase from 0.4 points last year.
– The increase in consumer spending reflects growing consumer confidence, driven by easing inflation and stable labor markets.
– On the other hand, government spending saw a slowdown, with public sector final consumption increasing by just 3.8%, down from a 4.9% growth in the same quarter last year. This contributed a modest 0.7 percentage points to GDP growth as the government shifts its focus from pandemic relief measures to more targeted fiscal approaches.
– Investment also provided a significant boost to the economy, with gross fixed capital formation (GFCF) rising by 8.9%. This marks a strong recovery from the 4.2% contraction reported in the second quarter of the previous year, leading to a contribution of 2.7 percentage points to economic growth, a significant turnaround from the negative impact of 1.4 points observed last year.
Overall, Morocco’s economic landscape is showing positive signs of recovery as domestic demand strengthens and investment rebounds.
