Morocco's GDP down 14.9% in 2020 Q2, HCP says

Morocco's economy posted a 14.9% decrease in growth in the second quarter of 2020, compared to 2.4% a year earlier, the High Commission for Planning (HCP) said.

This performance, which takes into account a 19.1% drop in taxes on subsidies' net income instead of a 2% increase, is the result of a 15.5% drop in non-agricultural activities and a 6.9% drop in the agricultural sector, the HCP points out in a briefing note on the national economic situation in the second quarter of 2020.

The value added of the primary sector with seasonal adjustment posted a 6.3% decline in volume in the second quarter of 2020, instead of -4.9% recorded a year earlier. This evolution is the result of a 6.9% decline in agriculture activity (-6% in 2019) and of a 0.7% increase in fishing activity (8.3% in 2019).

The value added of the secondary sector experienced a sharp decline in growth rate going down from 3.8% in Q2 2019 to -17.3%, the HCP underlined.

With the exception of the extractive industries which posted a 7.9% growth, the other segments posted negative growth, such as processing industries (-22%), construction and public works (-17.1%) and electricity and water (-12.3%).

The value added of the tertiary sector recorded a decline going from a 3.6% increase in Q2 2019 yo a 14.9% in the second quarter of 2020, according to the same source.

GDP plummeted 15.6% against a 4.2% increase a year earlier, resulting in a decline of -0.7% in the general price level, HCP concluded.