Growth slows, hampered by the agricultural sector

Economic growth slowed to 2.4% in the second quarter, from 2.5% last year, due to the contraction of the primary sector, while the secondary and tertiary sectors showed contrasting dynamics.  The economy was marked by a significant downturn in the primary sector, with a 5% drop in value added, after adjustment for seasonal variations. This contrasted sharply with the 1.2% increase recorded in the same quarter of the previous year. More specifically, value added in the agricultural sector fell by 4.5%, whereas it had risen by 1.5% a year earlier. This decline was due to recurrent droughts. Fishing, for its part, saw an even more pronounced decline, down 14.7%, amplifying the negative trend, having already recorded a 4.5% drop in the second quarter of 2023. This double downturn in agriculture and fishing weighed heavily on overall growth.

«3.8% rise in the secondary sector» 

In the non-agricultural sector, results were more diversified. Overall, value added in the non-agricultural sector rose by 3.2% in the second quarter of 2024, compared with an increase of 2.5% a year earlier. 
The secondary sector posted an increase of 3.8%, compared with a decline of 2.4% the previous year. Several sub-sectors contributed to this recovery. Mining and quarrying grew by 23.6%, compared with a sharp decline of 9.6% a year earlier. The building and public works sector also improved, with a 3.6% increase in value added, compared with a 2.4% fall in the same quarter the previous year. This trend is linked to the upturn in investment in infrastructure and construction. The tertiary sector, on the other hand, experienced an overall slowdown, although it continued to grow. The sector’s value added grew by 3.1%, but at a slower pace than in the second quarter of the previous year, when it stood at 5%. Several sub-sectors experienced a noticeable slowdown. Accommodation and food services were particularly hard hit, with a growth rate of 9.3%, well below the 32.8% recorded the previous year. Transportation and warehousing also slowed from 6.9% to 5.1%. Research and development, business services, education, health and social services all posted lower growth rates than the previous year, indicating a certain loss of momentum. 
However, some tertiary sectors maintained their growth momentum. 

Khadija MASMOUDI