Morocco’s wholesale trade sector experienced growth in late 2024, with 36% of businesses reporting increased sales, while the non-financial services sector faced challenges with 49% of companies noting a decline. Expectations for early 2025 are more optimistic, with significant portions of both sectors anticipating growth. Stable employment levels and order volumes are forecasted to continue.
Morocco’s wholesale trade sector showed significant growth last year, as 36% of wholesalers reported increased sales in the fourth quarter of 2024, according to a survey conducted by the High Commission for Planning (HCP). In contrast, the non-financial services sector faced difficulties, with 49% of businesses noting a decline in activity. Optimism for the first quarter of 2025 is higher, as 37% of service sector companies and 28% of wholesalers are expecting growth.
In the last quarter of 2024, nearly half of the business leaders in the non-financial services sector reported a decrease in activity, while 35% experienced growth. The main factors contributing to the decline included reduced activity in telecommunications, air transport, and real estate services. Conversely, the hospitality industry, land transport, and warehousing appeared to thrive during this period.
The capacity utilization rate for the sector was recorded at 74%. A majority of businesses, about 79%, reported their order books to be at a normal level. Employment stability was observed in 59% of companies, although 22% indicated job reductions. Investment priorities remained focused on equipment replacement and expansion, as noted by 76% of business leaders.
Looking ahead, 37% of business leaders express expectations for growth in the first quarter of 2025, with only 8% anticipating a decline. Positive growth trends are projected in land transport, warehousing, and IT services. However, more traditional sectors like postal and engineering activities may experience challenges. Stability in demand is expected by 68% of businesses, while 27% forecast an increase.
In the wholesale trade sector, 36% of businesses reported higher sales with 53% noting stability in the local market. Growth was especially notable in sectors such as industrial equipment, agricultural products, and specialized wholesale trade. Approximately 77% of businesses in this sector maintained stable employment, and 86% reported normal stock levels.
For the first quarter of 2025, vendors anticipate continued stability, with 64% expecting sales to remain unchanged and 28% predicting growth. The sectors likely to drive sales include household goods, food and beverages, and industrial equipment, although a decrease is anticipated in agricultural products and livestock trade. Most wholesalers (74%) expect order volumes to remain normal, with 79% suggesting employment levels will stabilize.
In summary, Morocco’s wholesale trade sector displayed remarkable growth in late 2024, with a significant number of businesses reporting increased sales. While the non-financial services sector struggled, future expectations from both sectors for early 2025 indicate cautious optimism. Key industries such as land transport and industrial equipment are poised for growth, whereas challenges remain for certain traditional sectors. Overall, the stability in employment and order volumes suggests a steady market outlook moving forward.
Original Source: www.moroccoworldnews.com
