Rabat - Morocco’s domestic demand surged in the first quarter of 2024, posting an annualized growth rate of 3.6%, a significant increase from the 0.3% recorded in the same period last year, according to the latest report from the Higher Commission of Planning (HCP).
Domestic demand is a key indicator of economic health, encompassing household, investor, and government expenditures.
A strong domestic demand drives business revenue, employment, investment, and government revenue, all of which are pivotal for sustained economic growth.
The current uptick in domestic demand is largely driven by increased household expenditures and gross investment, the report explains.
Household final consumption expenditure grew by 3%, compared to a 0.9% increase a year earlier. Gross investment, which includes Gross Fixed Capital Formation (GFCF), changes in inventories, and net acquisition of valuables, climbed by 4.6%, reversing a 5% decline in 2023.
In contrast, public administration’s final consumption slowed, dropping from 4.5% in the first quarter of 2023 to 3.9% in the first quarter of 2024.
Morocco’s overall economy is experiencing a robust rebound after three challenging years marked by severe drought and external shocks.
The HCP report revealed that strong domestic demand has been a key driver of economic growth in the first quarter of 2024, with Gross Domestic Product (GDP) averaging 2.5%, down from 3.9% in the same period last year.
“Driven by domestic demand, this growth was achieved in a context of controlled inflation and an improvement in the national economy's financing capacity,” the report states.