Morocco Higher Planning Commission Predicts Improvement in Economic Growth
Morocco's economic growth is expected to rise slightly in Q4 of 2019 to 2.6 percent, after falling to 2.4 percent in Q3 due to the contraction of global trade and slowed growth of non-agricultural activities, according to the country’s Higher Planning Commission.
In a memorandum Tuesday, the Commission expected Morocco's exports to improve, despite the difficult conditions resulting from the contraction of global trade.
Regarding automobile exports, the Commission expected that the sector will continue to decline, especially fully assembled vehicles, due to the drop in global demand for cars, most notably in the European and Chinese markets.
The export of parts and electrical components of cars manufactured in Morocco is linked to demand in the European market, it added.
Moroccan phosphate fertilizer exports will see modest growth during Q4 of 2019. The Commission pointed out that this period is expected to witness strong pressure on fertilizer prices following the increased demand on Asian fertilizer and declining global demand due to lower prices of agricultural products.
The Commission also noted that the dynamics of Moroccan exports of fertilizers will be affected by lower US and Indian imports, but will benefit from improved South American demand.
According to the Commission, the mining and manufacturing sectors will grow by 3 percent and the tourism sector by 2.3 percent.
Overall, the Commission forecasts that the agricultural sector will continue its contraction for the fourth consecutive quarter, and will stand at 2.6 instead of 2.8 percent compared to the same period last year.