Photo: REUTERS/Siphiwe Sibeko.

CAPE TOWN – Morocco’s economic growth slowed to 2.6 percent in the second quarter from 2.8 percent in the first quarter, the country’s planning agency said on Wednesday, citing a drop in agricultural activity.

Agricultural output, which represents some 15 percent of Morocco’s gross domestic product, fell 2.7 percent 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 percent from 2018.

Non-agricultural growth slowed to 3.4 percent in the second quarter, down from 3.8 percent a quarter earlier, mainly because of the mining sector.

Money supply rose to 4.3 percent in the second quarter, up from 3.8 percent the previous quarter. Fixed capital formation grew to 2.8 percent in the second quarter from 2.6 percent in the first quarter.

Third-quarter growth is seen falling to 2.4 percent as agricultural activity is expected to shrink 2.5 percent.

The central bank expects economic growth to slow to 2.8 percent in 2019 from 3 percent in 2018.

Reuters