Casablanca – Recent findings from the “Quarterly Economic Outlook Surveys” indicate optimistic projections for the “Manufacturing, Extractive, Energy, and Environmental Industries” and “Construction” sectors, forecasting an increase in production for the second quarter of 2024.
Manufacturing sector insights
Business leaders in the manufacturing sector anticipate an uptick in production, particularly in the “automobile manufacturing,” “mining,” and “manufacturing of other non-metallic products” industries. However, a decline is expected in “paper and cardboard manufacturing” and “leather and footwear manufacturing.” Despite these fluctuations, employment numbers in this sector are expected to remain stable.
The first quarter of 2024 saw stable production in the manufacturing industry, driven by growth in “food industries,” “automobile manufacturing,” and “manufacturing other transportation equipment.” Conversely, there was a decrease in “chemical industry” production and activities in “leather and footwear manufacturing” and “manufacturing electrical equipment.”
Extractive and energy sectors
In the extractive industry, business leaders are predicting an increase in production due to improved “phosphate production,” with employment levels expected to remain unchanged.
The energy sector is also poised to benefit from increased production in the second quarter of 2024, particularly in “electricity, gas, steam, and air conditioning production and distribution,” despite expected declines in workforce numbers.
Construction sector rebound
The construction sector has shown significant recovery, supported by recent data from the “Professional Association of Cement Manufacturers,” which reported that cement sales exceeded 5.52 million tons by the end of May 2024, marking a 7.31% increase compared to the same period last year.
Construction and public works business leaders attribute the sector’s improvement to the revival of “building construction” and “civil engineering” activities, although specialized construction activities remained stable.
Future projections
The construction sector’s upward trajectory is expected to continue into the second quarter of 2024, driven by anticipated improvements in “building construction,” “specialized construction activities,” and “civil engineering.” Most business leaders also foresee an increase in employment during this period.
Economic analysis
Several sectors are expected to experience growth and increased production, particularly in “construction and public works.” A primary factor is the significant strengthening of infrastructure, driven by preparations for the African Cup of Nations and the World Cup.
There is also a notable increase in the construction of numerous hotels and enhancements to reception and accommodation infrastructure due to a surge in tourism investment. The budget allocated for the 2030 World Cup alone is approximately $5.36 billion.
The construction sector is utilizing the majority of this budget to build public facilities, strategic buildings, and hotel units, as well as to enhance infrastructure through highways, expressways, and high-speed rail projects.
Additionally, Morocco has started constructing large industrial complexes in the renewable energy sector. The reconstruction and rehabilitation program for areas affected by the Al Haouz earthquake is also positively impacting the sector’s recovery, contributing to the overall growth of the manufacturing and construction industries.
The Moroccan manufacturing and construction sectors are experiencing a significant rebound, with optimistic projections for continued growth in production and employment through 2024.
