Economic growth slows in the first quarter of 2022

Kiosk360. Economic activity is slow in the first quarter of 2022, according to the latest Bank Al-Maghrib economic review. This article is a press review of the Aujourd’hui le Maroc newspaper.

In the first quarter of the year, economic activity is slowing down according to the latest economic review by Al-Maghrib Bank, as reported Morocco today in its April 11 edition. The reasons are many. Among them, the repercussions caused by the conflict in Ukraine or the unfavorable climatic conditions that mark the current agricultural campaign. “The filling rate of the dams also remains low, being limited to 34.1% on April 8 compared to 50.9% on the same date of the previous year”, indicates Bank Al-Maghrib.

By sectors, the construction industry saw its added value slow down in the first quarter of 2022 with an increase in cement sales of just 1% compared to a contraction of 10.1% the previous year.

For the “electricity and water” branch, it shows an increase of 4.5% in the production of electrical energy at the end of February compared to a fall of 2.2%. In its publication, Bank Al-Maghrib reveals that demand has improved by 2.8% in the first quarter of the year and the balance of foreign electricity trade continues to be in surplus, standing at 13 GWh.

As for the extractive industries, there was a 10.1% drop in the production of the phosphate market at the end of February, specifying Bank Al-Maghrib that “the activity should benefit from the fall in world supply as a result, in particular, from the decision of the Russian Federation authorities suspend the country’s exports of this raw material”.

Regarding the financial market, the liquidity needs of banks amounted to 66.7 billion dirhams on a weekly average at the end of March against 64.2 billion dirhams at the end of February 2022. The newspaper indicates that the injections of liquidity have been related to an amount of 77.5 billion dirhams and 35.3 billion dirhams were injected through advances of 7 days against 21.5 billion dirhams in the form of repurchase operation and 20, 6 billion dirhams through guaranteed loans.

Another clue: the foreign exchange market. Between February and March 2022, the dirham continued to fall by 3.77% against the dollar and 0.87% against the euro. In the second month of the year, the volume of foreign exchange in the interbank market reached 26 billion dirhams, or +2.1 billion dirhams compared to the previous month.

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