Despite Morocco’s effort to diversify its economy, agriculture still accounts for more than 10% of the country’s Gross Domestic Production (GDP), and employs 30% of the labor force.
While 2023 has seen a significant increase in the volume of rainfall in Morocco compared to last year, the country’s agriculture yield remains suboptimal, according to data from the Moroccan central bank, Bank Al-Maghrib (BAM).
In its latest report reviewing the state of the economy, BAM explains that at the end of March 30, 2023, the cumulative volume of rainfall in Morocco reached 202.4 mm, 15.6% up from the previous agriculture season and down 17.3% compared to the average of the past five years.
Morocco’s water resources remain low despite the moderate recovery in the filling rates of Moroccan dams, the report adds, detailing that dams’ average filling rate stands at 34.3% as of April 7, compared to 33.9% in 2022 and 50.9% in 2021.
Agriculture is a vital sector of Morocco’s economy. Despite the country’s effort to diversify its economy, agriculture still accounts for more than 10% of the country’s Gross Domestic Production (GDP), and employs 30% of the labor force.
However, Moroccan agriculture remains highly vulnerable to adverse weather, as last year’s drought caused the yield to plummet, sending food prices soaring and deepening the country’s dependence on food imports.
Many observers have described suboptimal agriculture yield as the root of rising inflation rates, one of the main challenges currently facing Morocco’s economy. Converging reports from the Higher Commission of Planning (HCP) and BAM indicate that lower supply is what is causing the price shock in the domestic market.
At the end of February 2023, inflation in Morocco rose by an annual rate of 10% year-on-year, five times the recommended 2% average. Many observers agree that the dramatic rise in inflation is mainly triggered by the rise in food prices.
Food prices have gone up at an annual rate of 18.4%, against 3.7% for non-food products.
Source : Morocco World News
