Morocco's economic activity picks up by 0.7% in Q1-2021

Economic activity has increased by 0.7% in the first quarter of 2021, according to the High Commission for Planning (HCP).

This growth is attributable to a 13.7% increase in agricultural value added, in a context of a 1% decline in non-agricultural value added, the HCP explains in its recent economic report.

Tertiary branches continued their decline at a slower pace compared to the previous quarter, contributing -0.7 points to the evolution of GDP, against -3.8 points a quarter earlier.

Secondary activities posted a 0.3% decline compared to a 1.6% decrease in the fourth quarter of 2020. The manufacturing industry declined by 0.8% in the first quarter of 2021 compared to -1.6% a quarter earlier.

The HCP also reports a 3.1% year-on-year increase in mining value added in the first quarter of 2021 against -0.4% a year earlier.

In agriculture, the note points out that the value-added showed a 13.7% increase year-on-year, after eight quarters of decline.

According to the HCP, domestic demand recovered slightly in the first quarter of 2021 (+0.8%), compared to the fourth quarter of 2020 (-4.3%).

Investment posted a 1.9%, year-on-year, decline due to a slowdown in the purchase of manufactured goods and real estate.