Morocco’s GDP to Grow by 3.9 percent in the First Quarter of 2017

Morocco’s High Commission for Planning (HCP) foresees an increase of 3.9 percent in Gross Domestic Product (GDP) during the first quarter of 2017, compared to 1.7 percent last year.

This increase in Morocco GDP during the first quarter hinges upon the anticipated recovery of 11.1 percent in the agricultural sector. This recovery is expected to contribute 1.3 percent to the GDP. The cumulative rainfall over the first four months of the 2016/2017 agricultural season tripled compared to the same period from last year. These improved climatic conditions and early crops have had a positive effect on agricultural activity.

 
The cumulative rainfall has registered a rise of 12.9 percent, accelerating the development of the grazing works of autumn cereals, legumes and sugar crops, in particular beets.

Based on the assumption that rainfall will be regular during the months of February and March this year, the HCP anticipates an increase in plant production, driven by a combined improvement in yields and seeded areas of early crops.

Livestock production is also expected to accelerate with the recovery of poultry production. It will also be helped by the continued reinforcement of the livestock production activities in the large livestock sector.

Aside from agriculture, GDP growth is set to register another 2.7 percent in the first quarter of the current year due to the enhanced business climate expected in the Euro area. Global demand on the kingdom is expected to register an increase of 3.2 percent, which would benefit certain exporting industries including automotive, electronics, clothing and textiles.

Growth in the industrial sector will also register an increase of 2.4 percent in the first quarter. Mining activity will see improved performance due to the strengthening of crude phosphate production.

On the other side of the equation, global demand on fertilizers will see a reduction in the prices for agricultural products. As a result, mineral added value is projected to hit 9.4 percent, as opposed to the11.4 percent registered last year.

Source :Morocco World News