Morocco’s national production decreased over the first four months of 2023, with the Capacity Utilization Rate (TUC) – a measure of the potential output against the production realized – remaining relatively stable at around 72%, according to Morocco’s Central Bank, Bank Al-Maghrib (BAM).
In its April economic survey, BAM shed light on the current state of business activity in the country, indicating a notable decrease in activity.
The survey indicates that both production and sales have experienced a decline across various sectors, except for the “chemical and para-chemical” industry, which saw a rise in activities, with a TUC of 73%.
The “agri-food” sector, on the other hand, has managed to stabilize its sales. The decrease in production and sales has primarily affected domestic markets, while exports resisted the trend, driven by the strong performance of the “chemical and para-chemical” industry.
In terms of orders, there has been an overall increase, reflecting positive growth in the “electric and electronic,” “chemical and para-chemical,” and “mechanical and metallurgical” sectors. However, the “agri-food” and “textile and leather” sectors have reported a decline in order volumes.
Looking ahead, industrialists remain cautiously optimistic, as they anticipate an improvement in production and sales over the coming three months across most sectors. Companies in the “electric and electronic” sector are the least optimistic about the potential of recovery in production, with almost 70% of business owners reporting that they expect production to drop over the next three months.
However, the “agri-food” sector is expected to stagnate, while the “textile and leather” sector may face both stagnant production and falling sales, with one-fifth of companies expressing uncertainty about the future trajectory of their production levels.
