Morocco's central bank reviews the country's output

Morocco's central bank, Bank Al-Maghrib (BAM), has reported a decline in the country's domestic production during the first four months of 2023. The capacity utilisation rate, which measures potential output against realised output, remained relatively stable at around 72%.

According to BAM's April economic survey, there has been a marked decline in business activity in a number of sectors. 

The survey revealed a decline in both production and sales in most sectors, except for the chemical and parachemical industry, which experienced an increase in activities with a capacity utilisation rate of 73%.

The agri-food sector, on the other hand, managed to stabilise its sales. The decline in production and sales mainly affected domestic markets, while 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, however, is less optimistic about the potential for production recovery, with almost 70 per cent of businessmen expecting a decline in the coming months.

As Morocco World News reports, the agri-food sector is expected to stagnate, while the textile and leather sector could face both stagnating output and declining sales. About one-fifth of firms in these sectors expressed uncertainty about the future trajectory of their production levels.

The current economic situation in Morocco highlights the need for both the public and private sectors to agree on efforts to address the challenges faced by the various industries. It is also crucial to implement measures that promote growth, support domestic markets and improve export capacities. 

In addition, the government's focus on 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 and create an enabling environment for businesses to thrive.

As Morocco navigates these economic challenges, a cautious but hopeful outlook prevails among industrial entrepreneurs, who foresee a gradual recovery in production and sales in the coming months. Collective efforts by stakeholders will play a crucial role in revitalising the country's industrial landscape and driving sustainable economic growth.