Rabat - Morocco’s economic engine is starting to start up again, fueled by a resurgence in domestic demand and a strong performance by the secondary sector, according to the High Commission for Planning (HCP).

The national economy grew by a healthy 2.4% in the first quarter of 2024, driven primarily by a 6.7 point contribution from domestic demand, a significant turnaround compared to the negative contribution seen in the first quarter of 2023.

Cereal sown areas have decreased significantly, and excessive temperatures coupled with a rainfall deficit have hindered crop development. This has resulted in a 3.9% decline in agricultural activities compared to the previous year.

However, in the secondary sector, encompassing industries like mining and manufacturing, emerged as a bright spot. Value added in this sector surged by 6.3%, fueled by a rebound in extractive industries like phosphate production.

This increase was driven by a combination of factors, including increased domestic demand from processing industries and a revival in international fertilizer trade.

Manufacturing also displayed positive growth, with a 6.8% year-on-year increase. This upswing was primarily driven by sectors like chemicals, transport equipment, rubber and plastics.

Construction activity also displayed signs of recovery, with a 3.7% increase in the first quarter of 2024. This momentum was attributed to public works projects, including preparations for major sporting events like the 2025 African Cup of Nations and the 2030 World Cup.

The tertiary sector, and encompassing services, experienced a return to its pre-pandemic growth trend, recording a 3.1% increase in value added.

Business services, particularly those linked to the recovering industrial sector, have displayed continued growth, while services related to individuals and trade saw moderate increases.

Household consumption, a critical driver of the Moroccan economy, showed a marked improvement, growing by 2.7% compared to a mere 0.1% in the previous year.

This increase is partly attributed to a calendar effect associated with Ramadan and a boost in purchasing power due to declining inflation.

Overall, while net external demand remains negative due to a higher increase in imports compared to exports, Morocco’s economic outlook appears positive.

According to the HCP, with domestic demand returning as a key growth engine and strong performances in key sectors, the country is poised for continued economic growth in the coming quarters.