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Morocco’s Economy Dips 6.3% in 2020

Morocco’s Economy Dips 6.3% in 2020

Tuesday, 8 June, 2021 - 10:45
Morocco's economy shrank by 6.3 percent in 2020, led by the agricultural sector (Reuters)

Morocco’s Gross Domestic Product (GDP) contracted by 6.3 percent in 2020 compared to a 2.6 percent growth reported in 2019, the High Commission for Planning (HCP) revealed.

The proportion of value added of the agricultural sector in 2020, excluding fisheries, saw a second decrease of 8.6 percent following a 5.8 percent posted in 2019.

Similarly, the proportion of value added of other sectors of non-agricultural activity also posted a sharp decline of 5.8 percent compared to a 3.9 percent increase a year earlier, the HCP said in its report on the national economic situation in 2020.

With the 7.6 percent drop in net taxes of subsidies on products compared to a 1.9 percent increase in 2019, the growth rate of real GDP, excluding agriculture, fell from 3.7 percent in 2019 to minus six (-6) percent in 2020, it added.

At current prices, the national GDP experienced a decline of 5.5 percent in 2020 compared to an increase of four percent a year earlier, prompting a decline in the general level of prices from 1.4 percent in 2019 to 0.8 percent in 2020.

“As a result, the kingdom’s need for financing has dropped from 4.1 percent of the GDP in 2019 to 1.8 percent in 2020.”

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