Morocco's savings rate remains strong despite economic slowdown

Morocco has maintained a robust national savings rate in the fourth quarter of 2024, according to the report published by the High Planning Commission (HCP). Despite a context of slowdown in final consumption and GDP growth, the country managed to raise its savings rate to 28.8% of GDP, surpassing the 28.2% recorded in the same period last year.

The HCP report notes that GDP growth at current prices slowed to 6.2%, compared to 8.4% in the fourth quarter of 2023. This slowdown in the pace of growth was accompanied by a slower expansion of domestic final consumption, which increased by only 4.9% compared to 5.7% in the previous year. Nevertheless, domestic savings managed to strengthen, reflecting a capacity to accumulate resources even in a less dynamic economic environment.

On the other hand, net income from the rest of the world showed a growth of 0.9%, which contributed to the growth rate of gross national disposable income at 5.8 per cent, a notable drop from 8.7% in the same period of 2023. Despite this slowdown, total investment in Morocco, which includes fixed capital formation, changes in inventories and the acquisition of valuables, accounted for 32% of GDP, a significant increase from 29.6% in the previous year.

However, the Moroccan economy faces new challenges. The financing needs of the national economy increased sharply from 1.4% to 3.2% of GDP, suggesting an increased reliance on external sources of financing. In addition, the country's economy grew by 3.7% in the last quarter of 2024, down from 4.2% in the same period of the previous year. This slowdown is largely due to a decline in agricultural activity, while non-agricultural sectors experienced more modest gains.

Despite these challenges, Morocco continues to rely heavily on domestic demand as an engine of growth. However, rising financing needs and the growing trade deficit could represent obstacles to economic stability in the near future. In this context, strengthening the national savings rate could play a crucial role in consolidating the country's macroeconomic stability and promoting sustainable growth.