A sharp decline in domestic demand influences the report economic growth - HCP

By Loubna Flah

Morocco world news

Casablanca, June 4, 2013

The High Commissioner for planning (HCP) issued a memorandum assessing the performance of the Moroccan economy with emphasis on the level of domestic demand.

The HCP report revealed a considerable dip this year domestic demand. The contribution of domestic demand to economic growth decreased by 3.8% it has reached 2.7% in 2013 from 6.5% last year.

Domestic demand is defined as the total amount that is spent on goods and services by individuals, businesses and Government, or which would be spent if the products and services were available.

HCP reports attributed this slowdown of domestic demand to a significant slowdown in consumption of households by 3, 8%, a strong decrease in spending last year, estimated at 7, 4%.

The decline in domestic demand also explains the low growth in international trade. On the other hand, the potential of funding also decreased concomitantly with sluggish growth in domestic growth which reached 4, 8%.

On the other hand, the transfer of remittances fell significantly affected by the decline in the income of the Moroccan community residing abroad.

These factors have contributed to a visible decrease in the growth of the national economy, declined by 5% in 2011 for 2, 7% in 2012.