Bank Al-Maghrib (BAM), Morocco’s central bank, has reported a decline in the country’s domestic production during the first four months of 2023. According to BAM’s April economic survey, there has been a marked decline in business activity in various sectors.
The agri-food sector and textile and leather sector have been heavily impacted by the decline in production and sales. Most sectors recorded a decrease in production and sales, except for the chemical and parachemical industry, which experienced an increase in activities with 73% capacity utilisation rate. Interestingly, exports showed resilience driven by the good performance of the chemical and parachemical industry.
In terms of orders, there was an overall increase, indicating positive growth in the electrical and electronics, chemical and para-chemical, and mechanical and metallurgical sectors. However, in the case of the agri-food and textile and leather sectors, a decline in the volume of orders was recorded.
Despite the difficult circumstances, industrialists remain cautiously optimistic and expect an improvement in production and sales in the next three months in most sectors. The electrical and electronics sector is a bit gloomy and anticipates a decline in the coming months.
An uncertain economic situation requires both the public and private sectors to agree on efforts to sustain the industries facing various challenges. Diversifying the economy and supporting industries such as the chemical and para-chemical sector has shown promising results. Continued support and targeted interventions will be vital to stimulate growth, encourage investment empowering businesses to function and develop sustainably.
The bulletin claims that the government must play a more proactive role in addressing the challenges of the various industries. It is crucial to implementing measures that promote growth, support domestic markets and improve export capacities simultaneously.
Although the economic situation in Morocco has been unsteady, a hopeful outlook prevails among industrial entrepreneurs, who foresee a gradual recovery in production and sales in the coming months. Thus, collective efforts by various stakeholders would play a crucial role in revitalizing the country’s industrial landscape and driving sustainable economic growth.
