Decline in Domestic Demand Growth Rate
In a recent report published by Morocco’s High Commission for Planning (HCP), it has been revealed that domestic demand growth in Morocco has slowed to 5% in the second quarter of 2026. This figure represents a significant decrease from the 7.5% growth recorded during the same period in 2025. The decline in growth rate is indicative of broader economic trends affecting consumer behavior and government spending, contributing only 5.6 percentage points to national economic growth, a stark decline from the 10.3 points reported a year earlier.
Consumer Spending and Government Expenditure Trends
The HCP's analysis further details that household final consumption expenditure has shown a rise of 4.1%, a notable increase from the previous year's 1.8%. This shift in consumer spending has resulted in a contribution of 2.3 percentage points to overall economic growth, up from 1.1 points a year prior. However, government final consumption expenditure has experienced a slight slowdown, declining from 4.8% in the second quarter of 2025 to 4.6%, contributing 0.8 percentage points to growth compared to 0.9 points previously. Furthermore, the pace of gross investment growth has significantly decelerated from 20.3% a year earlier to just 6.8%, indicating a drop in investment confidence and economic activity, with its contribution to economic growth falling to 2.4 percentage points from 8.3 points. These figures collectively illustrate a cautious economic landscape where both consumer and government spending show signs of slowing down, posing potential challenges for future economic stability in Morocco.
As reported by en.yabiladi.com.
