Morocco continues to record “solid” economic recovery (OECD Secretary-General)

by times news cr

Presenting the conclusions of the first OECD economic survey on Morocco during the closing ceremony of the Morocco-OECD Country Programme II, which was held in the presence of the Head of Government, Aziz Akhannouch, Mr. Cormann noted that the growth of the national economy rebounded after the crisis linked to the coronavirus pandemic, despite the Al Haouz earthquake and episodes of drought.

Morocco, he continued, benefits from a stable macroeconomic framework, noting that the budget deficit is reducing with a public debt ratio approaching 70% of GDP (gross domestic product) and that inflation is falling thanks to the moderation of food prices.

He also indicated that the Moroccan economy is expected to continue on its steady recovery path, with real GDP growth forecast at 3.5% in 2024 and 4% in 2025.

Among the challenges facing the Kingdom, the OECD Secretary General cited the need to increase productivity growth. For him, Morocco has room to improve this productivity and the new investment charter plays an important role in stimulating private investment in industry.

In this context, Mr. Cormann said that the Organization recommends encouraging more competition and increasing the role of the private sector, which could help increase the production of sophisticated goods.

He further called for the adoption of new measures to reduce the informal economy with the aim of increasing productivity and creating better jobs.

Mr Cormann also stressed that the ongoing education reform should improve skills and educational outcomes, while an increase in the rate of young people completing secondary school would help to strengthen skills and broaden prospects in the labour market.

On another note, he pointed out that the climate transition and water scarcity constitute another challenge identified by this study, to which Morocco is responding through its ambitious commitment to reducing carbon emissions and promoting renewable energies.

For her part, the Minister of Economy and Finance, Nadia Fettah, returned to the results of the said study which, according to her, recognizes the stability of the macroeconomic framework of Morocco and the recovery of economic activity.

This study highlights the major reforms undertaken to promote investment and strengthen social protection, while stressing the need for stronger economic convergence to achieve the objectives of the New Development Model and the building of the foundations of the social state, desired by His Majesty King Mohammed VI, continued Ms. Fettah.

And to affirm that the Kingdom has been able to demonstrate its resilience in the face of the current polycrisis, absorbing shocks while maintaining macroeconomic balance.

In terms of the business climate, the minister noted that the results of the study highlight the relevance of the Investment Charter, the reforms linked to the business climate and proposes to evaluate the incentives offered a posteriori, for better targeting of public action.

Conducted by the Morocco Economic Desk at the OECD since February 20, 2023, this study analyzes Morocco’s economic performance in the face of global and internal challenges, while providing growth prospects and strategic recommendations.

2024-09-11 16:42:05

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