strong moderation in domestic demand in Q2-2022

The High Commission for Planning (HCP) reports, in its recent economic update, a strong moderation in domestic demand in the second quarter of 2022.

Thus, final consumption would have remained moderate in Q2-2022, in a context of a sharp increase in consumer prices and a decline in rural incomes, specifies the HCP. Consumption by general government would have increased by 5.9%, in line with the increase in operating expenditure. But that of households would have been less dynamic, posting an increase of 1.8%, in annual variation, instead of +13.6% during the same quarter of last year.

The slight surplus in domestic consumption would have been fueled by an increase in the flow of consumer credit, a reduction in savings and by the continued strengthening of transfers from Moroccans residing abroad (MRE), explains the HPC. It would have benefited, to a large extent, expenditure on services, in particular that of health and communication, while expenditure devoted to manufactured goods, in particular imports, would have fallen significantly. Investment, for its part, would have continued to decline in the second quarter of 2022, at the rate of 1.3%, in annual variation. This development would have been, in particular, attributable to the continuation of the movement of destocking of companies initiated at the beginning of the year, particularly in the extractive industries sector and to the slowdown in investment in construction.

Investment in industrial products appears to have improved slightly, in the wake of an increase in imports of industrial capital goods.

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