Morocco’s GDP Records 14.9% Decline in Second Quarter of 2020

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Rabat – Morocco’s gross domestic product (GDP) decreased by 14.9% in the second quarter of 2020, a press release from the High Commission for Planning (HCP) announced.

The document, published on Wednesday, highlights the difference between GDP evolution in the second quarter of 2019 and 2020. Last year, Morocco’s GDP increased by 2.4% in the second quarter.

This year’s decline is mainly due to a 19.1% drop in net taxes on products, compared to a 2% increase in the same period of 2019.

The majority of Morocco’s economic sectors recorded decreased productivity between April and June 2020 compared to 2019, contributing to the decline in GDP.

Non-agricultural activities declined by 15.5%, while agricultural activities dropped by 6.9%.

Morocco’s primary sector recorded a drop of 6.3% in the second quarter of 2020, compared to a 4.9% decrease in 2019.

Read also: Morocco’s Industrial Index Records Drop of 0.2% in August

Meanwhile, the added value of the secondary sector witnessed a sharp drop of 17.3%. In the second quarter of 2019, it only decreased by 3.8%.

Besides extractive industries which recorded a 7.9% growth, all the industries in the secondary sector witnessed a decrease in added value. Processing industries declined by 22%, construction and public works by 17.1%, and electricity and water by 12.3%.

Finally, the tertiary sector witnessed a decline of 14.9% in the second quarter of 2020. In the same period of 2019, the service sector’s added value increased by 3.6%.

The decline resulted from a 90% drop in the activity of hotels and restaurants, a 55.7% decline in transport, and a 26.5% decrease in trade.

Some services, on the other hand, witnessed increased activity, such as public administrations and social security (5.1%), education and health services (4.9%), and financial services (3.3%).

Read also: 2019 State Budget: Morocco Maintains Similar Budget Deficit to 2018

Source: moroccoworldnews.com