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.



Saudi Business and Job Growth Hit 14-Year High

Riyadh, Saudi Arabia (AFP)
Riyadh, Saudi Arabia (AFP)
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Saudi Business and Job Growth Hit 14-Year High

Riyadh, Saudi Arabia (AFP)
Riyadh, Saudi Arabia (AFP)

Business conditions in Saudi Arabia’s non-oil private sector improved notably in June, driven by a marked rise in customer demand and expanded production, according to the latest Riyad Bank Purchasing Managers’ Index (PMI) data.

New business volumes surged, fueling the fastest pace of employment growth since May 2011. This strong demand for workers pushed wage costs to record highs, adding pressure on overall expenses and contributing to a fresh increase in output prices.

The headline PMI climbed to 57.2 in June from 55.8 in May - its highest level in three months and slightly above the long-term average of 56.9. The reading signaled a robust improvement in the health of the non-oil private sector economy.

Companies reported another rise in new orders last month, with growth accelerating following a recent low in April. Many firms cited gaining new clients, alongside improved marketing efforts and stronger demand conditions. Domestic sales were the main driver of the increase, while export sales edged up slightly.

Purchasing Activity Expands

Production continued to expand through the end of Q2, although growth slowed to a 10-month low. Purchasing activity picked up sharply as companies sought to secure additional inputs to meet rising demand, with the pace of purchase growth reaching its fastest in two years.

Employment growth accelerated as businesses rapidly expanded their workforce to keep pace with incoming orders, pushing hiring to the highest level since mid-2011. This strong recruitment trend, which began early in 2025, was largely driven by a rising need for skilled workers, prompting companies to increase salary offers. Consequently, overall wage costs rose at the fastest rate since the PMI survey started in 2009.

Facing mounting cost pressures from higher raw material prices, firms raised their selling prices sharply in June , the biggest increase since late 2023, reversing declines recorded in two of the previous three months. This price hike largely reflected the passing of higher operating costs onto customers, although some companies opted for competitive pricing strategies by cutting prices.

Resilient Economic Outlook

Looking ahead, non-oil private sector firms remained confident about business activity over the next 12 months. Optimism hit a two-year high, supported by resilient domestic economic conditions, strong demand, and improved sales. Supply-side conditions also showed positive momentum, with another strong improvement in supplier performance.

Dr. Naif Alghaith, Chief Economist at Riyad Bank, said: “Future expectations among non-oil companies remain very positive. Business confidence reached its highest level in two years, underpinned by strong order inflows and improving local economic conditions.”

He added: “However, cost pressures became more pronounced in June, with wage growth hitting record levels as companies compete to retain talent. Purchasing prices also rose at the fastest pace since February, partly driven by increased demand and geopolitical risks. Despite these challenges, companies broadly raised selling prices to recover from May’s declines, reflecting an improved ability to pass higher costs onto customers.”