The latest World Bank report indicates that the Moroccan economy has shown its resilience and accelerated its pace, with real gross domestic product growth of 3.4% in 2023, forecasting a slowdown to 2.9% this year.
According to the statement of the international financial institution this Thursday, despite various obstacles such as the slowdown in the global economy, the inflationary shock and the upheavals caused by the rise in hydrocarbon prices, the Moroccan economy has demonstrated its ability to resist and accelerated its pace, recording an increase in real GDP of 3.4% in 2023.
Ahmedou Ould-Abdallah, Regional Director for the Maghreb and Malta region at the World Bank, stressed that “this report highlights the crucial role of productivity in promoting economic growth and living standards in any country, in line with the new development model and Morocco’s vision for long-term comprehensive development.”
He added, according to the statement, that “the country has recently made significant progress, including the activation of the Competition Council, legislative adjustments in competition matters and a historic resolution to combat monopolistic practices in the fuel distribution sector. To capitalize on these developments, as indicated in the new growth model, continued efforts must be made, especially to support small and medium-sized enterprises.”
According to the World Bank, growth was driven by the recovery of the tourism sector, as well as the solid performance of export-oriented manufacturing sectors, notably the automobile and aeronautics industries, and a recovery in private consumption.
Furthermore, “supportive macroeconomic policies, including public sector expansion and fiscal consolidation strategies, have contributed to this economic acceleration,” she added.
Morocco has also seen “a significant increase” in foreign direct investment, providing great development opportunities, as well as a reduction in the current account deficit to its lowest level since 2007.
However, the World Bank stresses that the Moroccan economy “faces challenges”, particularly with businesses and households struggling to recover from recent shocks, illustrated by an increase in business failures and a loss of 200,000 jobs in rural areas in 2023 despite economic acceleration.
The level of consumption per capita has only barely returned to its pre-pandemic levels, according to the same source. A new social assistance program is planned to help the most vulnerable families.
According to the World Bank, economic growth is expected to slow to 2.9% in 2024 due to a weak agricultural season, but overall non-farm GDP is expected to “continue to be resilient.”
