HCP/ Morocco’s economic outlook: direct social assistance measures should contribute to mitigating the impact of inflation on the purchasing power of targeted households

HIBAPRESS-RABAT
In a turbulent environment, the global economy is expected to continue to be impacted by ongoing geopolitical tensions, spillovers from monetary policy tightening and continued inflationary pressures. The recovery in global economic growth is thus expected to remain slow and regional disparities are expected to widen further.
At the national level, the economic recovery would have been moderate in 2023, suffering from sluggish external demand, inflation that is difficult to mitigate, the persistence of unfavorable climatic conditions and a sluggish secondary sector. However, the relative improvement in agricultural production and the consolidation of the tertiary sector would have benefited the evolution of economic growth in 2023.
The year 2024 should see a strengthening of economic activity, benefiting from the dynamism of foreign demand, the expected decline in the rate of inflation and the support of public investment. In addition, the operationalization of the social programs defined by the Royal Strategy, in particular the direct social assistance measures, should contribute to mitigating the impact of inflation on the purchasing power of targeted households, in a context marked by a planned decompensation of butane gas.
Similarly, the continuation of the social state project and the implementation of the reconstruction and general upgrading programme for the regions hit by the earthquake should benefit economic dynamics.