By Loubna Flah
Morocco World News
Casablanca, June 4, 2013
The High Commission for Planning (HCP) issued a memorandum appraising the performance of the Moroccan economy with an emphasis on the level of domestic demand.
The HCP report revealed a considerable dip in domestic demand for the current year. The contribution of domestic demand in economic growth dropped by 3,8% as it has reached 2,7% in 2013 compared to 6,5%recorded last year.
Domestic demand is defined as the total amount of money that is spent on goods and services by the people, companies, and government, or that would be spent if the goods and services were available.
The HCP reports attributes this deceleration in domestic demand to a noticeable slowdown in the households consumption expenditure by 3, 8%, a steep decrease from last year’s expenditure estimated at 7, 4%.
The drop in domestic demand accounts also for the sluggish growth in international trade. On the other hand, the financing potential has also decreased in concomitance with a sluggish growth in domestic growth that has reached 4, 8%.
On the other hand, the transfer of remittances dropped significantly affected by the decrease in the income of the Moroccan community living abroad.
These factors contributed in a visible decrease in the growth of the national economy, which dropped from 5 % in 2011 to 2, 7%recorded in 2012.