Shimaa Hefzy

Morocco's gross domestic product grew by 2.8% year-on-year during the third quarter of this year, the High Commission for Planning announced on Friday evening.

Morocco, which was recently hit by the strongest earthquake in nearly a century, leaving thousands dead and injured, is suffering from a record high inflation rate of nearly 6.6% in 2022, compared to 1.4% in 2021, due to the repercussions of the war in Ukraine and the disruption of food supply chains.

In December, the Central Bank of Morocco kept interest rates unchanged at 3%, after the annual inflation rate slowed in November to 3.6% from 4.3% in October.

According to the statement, agricultural activities grew by 5.7% during the third quarter of this year, and non-agricultural activities grew by 2.7%, while domestic demand supported economic growth.

Agriculture is one of the most important components of the Moroccan economy. The sector accounts for about 15% of the gross domestic product, according to the World Bank, and employs about half of the country’s workforce. Agricultural products account for more than 20% of Morocco’s exports, according to the World Bank. The sector has been affected by a drought.

The Central Bank of Morocco expects the country's GDP to grow by 2.7% this year, then by 3.2% next year, and 3.4% in 2025.

(Prepared by: Shaimaa Hefzy, for communication: zawya.arabic@lseg.com)

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