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Economic growth slows to 2.6% in 2019

Economic growth in Morocco would slow down to 2.6% in 2019, after 3% in 2018, under the effect of the decline in agricultural value added, according to the Committee for coordination and monitoring of systemic risks of Morocco which held its tenth meeting at the headquarters of Bank Al-Maghrib in Rabat with a view to analyzing the situation of the Moroccan financial system.

As for the growth of the non-agricultural sector, it would experience some improvement with growth going from 2.6% in 2018 to 3.3% in 2019, to 3.5% in 2020 and to 3.7% in 2021, a said the Committee in a press release.

In terms of public finances, the committee estimates that the budget deficit excluding privatization would widen to 4.1% of GDP in 2019, after 3.7% in 2018, and should return to 3.8% of GDP in 2020 and 3 , 5% in 2021, thanks to budgetary consolidation efforts, noted the committee.

The Committee also underlined that in a context of strengthening of non-agricultural activity, bank credit recorded a slight recovery, benefiting particularly private companies, adding that the rate of non-performing loans of non-financial enterprises has stabilized around by 10% and that of households increased from 7.4% in 2018 to 7.9% in 2019.

He noted on the other hand that in this conjuncture and despite the slowdown in their interest margin, the banks managed in the first half of 2019 to preserve their profitability linked in particular to the increase in the results of market activities combined with a lower cost of risk.

In terms of external accounts, the current account deficit, after widening in 2018 to 5.5% of GDP, should ease to 4.6% in 2019 and continue to improve over the next two years, estimated the Committee, noting that the net international reserves would continue to cover around five months of imports of goods and services over the forecast horizon.

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