Financial and Nonfinancial Corporations Main Driver of Moroccan Economy in 2016

Rabat – In 2016, financial and nonfinancial corporations were the first producer of national wealth, according to the recent report released by the High Commissioner for Planning (HCP).Tackling the institutional sector accounts for 2016, the HCP’s recent report noted that these companies have slightly improved their contribution to gross domestic product (GDP) from 42.9 percent in 2015 to 43.2 percent 2016.In addition to increasing the gross national income by 14.9 percent, these companies contributed by 53.6 percent to national savings and by 57 percent to investment (gross fixed capital formation), according to the public body. However, the contribution of households and non-profit institutions serving households (NPISHs) and that of general government registered, by contrast, a decrease of 0.4 percent and 0.1 percent respectively compared to 2015. According to the HCP, they stood respectively at 29.3 percent and 15.8 percent of the national GDP and are, respectively, down 0.4 points and 0.1 points from 2015.According to the data analyzed, the Gross National Income Available (GNI) has, for its part, increased by 3.2 percent in 2016 to reach MAD 1076.9 billion. “This improvement is due to the increase in gross disposable income of 6.8 percent for general government, 3.1 percent for corporations (financial and non-financial) and 2.1 percent for households and NPISHs,” explained the HCP.The public body added that the institutional sector contributions to GNI stood at 62.5 percent for households and NPISHs, 22.6 percent for general government, and 14.9 percent for corporations (with 2.6 percent for financial corporations).The analysis also shows that households’ gross disposable income (RBD) increased by 2.1 percent to MAD 665.1 billion in 2016, 87.6 percent of which was spent on household, final consumption, compared to 86.4 percent in 2015, said the HCP.Under these conditions, the analysts of the HCP established that the savings rate of households fell by 1.2 point, to stand at 12.9 percent in 2016.In relation to the population, they estimated that gross disposable income reached MAD 19,286 in 2016, up 1 percent from last year, and that “the increase in consumer prices being 1.6 percent in 2016, the power of household purchasing has therefore deteriorated by 0.6 percent.”As for gross fixed capital formation (GFCF). It stood at MAD 306.9 billion in 2016, up 9.5 percent from 2015.For the High Commission, there is no doubt that companies (financial and non-financial) remain the largest investor in Morocco, with a contribution increasing from 55.2 percent of GFCF in 2015 to 57 percent in 2016. On the other hand, household and government contributions declined from 26.9 percent to 25.9 percent and from 17.6 percent to 16.8 percent, respectively.“National savings, for its part, stood at MAD 292.7 billion in 2016, an improvement of 2.8 percent. Its breakdown by institutional sector shows that financial and non-financial corporations contribute by 53.6 percent, followed by households and NPISHs by 30.2 percent and general government for 16.2 percent.”In its note, the HCP also indicated that the nation’s financing requirement stood at MAD 43.2 billion in 2016 and represented 4.2 percent of GDP instead of 2 percent a year earlier.According to the explanations of the High Commission, this situation is mainly attributable to “the sharp increase of MAD 17.8 billion in the financing needs of non-financial corporations to reach MAD 54.1 billion in 2016.”On the other hand, the HCP noted that the financing of the public administrations fell by MAD 5.6 billion to represent MAD 9.4 billion. While the financing capacity of households has experienced, for its part, “a decline of MAD 10.4 billion and that of financial companies MAD 976 million, to stand respectively at  5.5 and MAD 14.7 billion in 2016” read more