RABAT (Reuters) – Morocco’s economic growth slowed to 2.6% in the second quarter from 2.8% in the first quarter, the country’s planning agency said on Wednesday, citing a drop in agricultural activity.
Agricultural output, which represents some 15% of Morocco’s gross domestic product, fell 2.7% in the second quarter after a drop of 3.2% a quarter earlier. Lack of rainfall cut cereals production to 6.1 million tonnes, down 40.7% from 2018.
Non-agricultural growth slowed to 3.4% in the second quarter, down from 3.8% a quarter earlier, mainly because of the mining sector.
Money supply rose to 4.3% in the second quarter, up from 3.8% the previous quarter. Fixed capital formation grew to 2.8% in the second quarter from 2.6% in the first quarter.
Third-quarter growth is seen falling to 2.4% as agricultural activity is expected to shrink 2.5%.
The central bank expects economic growth to slow to 2.8% in 2019 from 3% in 2018.
Reporting by Ahmed Eljechtimi, editing by Larry King