2024-07-18 16:30:20
“Despite various obstacles, such as the slowdown in the global economy, an inflationary shock and the Al Haouz earthquake, the Moroccan economy has shown resilience and recovered, with real output increasing by 3.4% in 2023,” the international financial institution said in a statement published on Thursday.
This report demonstrates “the importance of productivity in improving economic growth and a country’s standard of living. This is in line with the New Development Model (NDM) and Morocco’s long-term inclusive development vision,” said World Bank Country Director for the Maghreb and Malta, Ahmadou Moustapha Ndiaye.
“The country has recently made significant progress, including operationalizing the Competition Council, amending the competition law, and reaching a landmark antitrust settlement with fuel distributors. To build on these advances, and as the NMD emphasizes, continued efforts will need to be made, particularly to support small and medium-sized enterprises,” Mr. Ndiaye added, as quoted in the statement.
The main drivers of this acceleration, according to the World Bank, were the recovery of the tourism sector, export-oriented manufacturing niches, particularly in the automotive and aeronautics sectors, as well as the restart of private consumption.
“Favourable macroeconomic policies, such as public sector expansion and fiscal consolidation strategies, have also contributed to this economic growth,” it added.
Morocco also recorded a “substantial increase” in foreign direct investment, offering significant development opportunities, and a drop in the current account deficit to its lowest level since 2007.
The World Bank nevertheless stresses that the Moroccan economy “faces challenges as businesses and households struggle to recover from recent shocks, as evidenced by an increase in business bankruptcies and a loss of 200,000 jobs in rural areas in 2023, despite economic acceleration.”
Per capita consumption has barely recovered to pre-pandemic levels, and a new social assistance program will support the most vulnerable households, underlines the same source, which anticipates that in 2024, economic growth should slow to 2.9% “due to a poor agricultural campaign, but non-agricultural GDP should remain stable.”
2024-07-18 16:30:20