Morocco Expects Quarterly Growth of 3.3%

Morocco Expects Quarterly Growth of 3.3%
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Morocco Expects Quarterly Growth of 3.3%

Morocco Expects Quarterly Growth of 3.3%

Morocco’s High Commission for Planning (HCP) expects economic growth to amount to 3.3 percent in Q1 2020, exceeding the 2.5 percent growth during the same period in 2019.

It attributed this growth to anticipated growth in the agricultural activities sector by 6.8 percent and the non-agricultural activities by about 2.8 percent, during this years’ first quarter.

It also expected a less restrictive international context for the national economy in the first quarter of 2020.

“With the fears of a global recession and the easing of trade tensions between China and the United States, world trade will pick up some momentum.”

“Under these conditions, the global demand addressed to Morocco would benefit from a slight revival of dynamism in imports from the eurozone and would show an increase of 1.3 percent, in annual variation,” according to the economic outlook.

It also pointed to an expected development in the national economy during the first quarter of 2020 “in light of an international circumstance characterized by a slight improvement compared to the previous quarter.”

It comes in line with the decrease in fears of a global economic crisis and the decrease in trade tension between China and the United States.

The HCP noted that global trade exchanges will witness a slight recovery, while the global economy will continue to grow at a below-average rate.

It said the global economy will remain subject to inflationary pressures associated with the hike in oil prices in international markets, as the inflation rate will be close to two percent at the global level.

Meanwhile, the global demand for Moroccan exports is expected to increase by 3.1 percent in 2020, the HCP said.

The report revealed that consumption loans increased by 4.7 percent in the last quarter of 2019, proving that the expenditure of Moroccan households is on the rise, along with purchase power.

Consumption expenditure for Moroccan households reached 2.5 percent, compared to two percent in the previous quarter, while public expenses increased by 3.7 percent.



Gold Gains over 1% as Dollar, Yields Ease; Spotlight on Trade

A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
TT
20

Gold Gains over 1% as Dollar, Yields Ease; Spotlight on Trade

A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo
A gold seller arranges gold bracelets at a gold shop in Bangkok's Chinatown, Thailand, January 27, 2025. REUTERS/Chalinee Thirasupa/ File Photo

Gold prices gained over 1% on Monday as the dollar and US bond yields weakened amid uncertainty over trade talks ahead of a US deadline of August 1 for countries to strike deals or face more tariffs.

Spot gold was up 1.2% at $3,390.79 per ounce at 9:52 ET (1352 GMT). US gold futures were up 1.3% to $3,402.40.

The US dollar index was down 0.4%, making dollar-denominated gold more affordable for buyers using other currencies, while benchmark 10-year U.S. Treasury yields hit a more than one-week low, Reuters reported.

"With the August 1st deadline looming, it brings a level of uncertainty to the market and that certainly is supportive," said David Meger, director of metals trading at High Ridge Futures.

The European Union is exploring a broader set of possible counter-measures against the US as prospects for an acceptable trade agreement with Washington fade, according to EU diplomats.

On the interest rate front, traders are pricing about a 63% chance of a rate cut in September, according to the CME FedWatch Tool.

U.S. Treasury Secretary Scott Bessent said the entire Federal Reserve needed to be examined as an institution and whether it had been successful.

Talk of earlier than expected U.S. rate cuts is building, with speculation around a possible replacement of Fed Chair Jerome Powell and reshaping of the Fed adding to market jitters, Meger said.

Gold is considered a hedge against uncertainty and tends to perform well in a low interest rate environment.

Data showed that the world's leading gold consumer, China, brought in 63 metric tons of the precious metal last month, the lowest amount since January. Its imports of platinum in June fell 6.1% from the prior month.

Spot silver gained 1.8% to $38.86 per ounce, platinum rose 2.2% to $1,453.17 and palladium was 3.5% higher at $1,284.46.