Skip to content Skip to Search
Skip navigation

Morocco’s economy forecast to grow 3%

Morocco economy Wikimedia Commons/Adam Jones
The medina in Meknes: An improved harvest and increase in tourism will help Morocco's economy, but its fiscal deficit is also set to worsen
  • Earthquake effect may reduce growth
  • Q2 unemployment down slightly at 12.4%
  • Fiscal deficit of 5.8% predicted

Morocco’s economy is forecast to grow by 3.1 percent this year, boosted by an improved harvest and increased tourist numbers, according to the European Bank for Reconstruction and Development.

However, the estimate does not take into account the earthquake that struck at the start of this month in the High Atlas Mountains near Marrakech, which destroyed infrastructure and killed more than 3,000 people.

The disaster prompted analysts at BMI, formerly Fitch Solutions, to cut GDP growth expectations for this year from 2.4 percent to 1.8 percent.

In its most recent regional economic report, the EBRD adopted a more optimistic outlook with the estimated growth of 3.1 percent, up from the 1.3 percent rate recorded in 2022 when a drought compounded the adverse impact of tighter global financing conditions.

“Growth is expected to reach 3 percent in 2024, reverting to pre-pandemic levels in the medium term, with accelerated momentum on reforms potentially improving the outlook further”, the report said.

Unemployment in the North African country fell slightly to 12.4 percent in the second quarter of 2023, with higher rates among women (17 percent) and youth (33.6 percent), and in urban areas (16.3 percent).

Abdellatif Jouahri, governor of Morocco’s central bank, said on Tuesday that it is still too early to judge the real impact of Al Haouz earthquake on the national economy.

“An in-depth analysis is being carried out to measure the impact of the earthquake on various sectors of activity,” he said.

Morocco’s fiscal deficit was expected to widen from 5.2 percent of GDP in 2022 to 5.8 percent this year. This is well up on the 10-year pre-pandemic average of 4.4 percent and had been attributed to higher capital spending – which is now set to increase even further.

“While reconstruction expenditure might provide a boost to medium-term growth, it might also increase the need for financing,” the EBRD report said.

Latest articles

Over 400 global food brands are taking part in the SaudiFood Manufacturing show in Riyadh this month

Saudi Arabia’s food factory count rises to 1,300

The total number of food factories operated by the Saudi Authority for Industrial Cities and Technology Zones (Modon) has reached 1,300, across 36 cities. The increase signifies the growing capacity of the domestic food industry and its localisation efforts, the state-run Saudi Press Agency reported. Food industry companies have recorded a growth rate of more […]

Garden, Nature, Outdoors

UAE commits $50m to development fund

The UAE has committed $50 million to the second phase of the Lives and Livelihoods Fund 2.0 (LLF 2.0), a multi-donor initiative targeting sustainable economic development in the Islamic Development Bank’s (ISDB) 57 member countries. The funding will be deployed by LLF 2.0 to support critical projects in health and infectious diseases, agriculture, and social infrastructure in low […]

Money, Dollar, Person

Abu Dhabi launches $5bn bond issue after 3 years

Abu Dhabi has initiated $5 billion in three-tranche bond issue after a hiatus of three years, according to a media report said. The $1.75 billion five-year bond, 1.5 billion 10-year tranche and $1.75 billion 30-year issue was priced at 35, 45 and 90 basis points, respectively, over US Treasuries, fixed income news service IFR reported. Abu […]

Oman UAE deals Sultan of Oman president of UAE

Oman and UAE sign deals worth $35bn

The UAE and Oman have announced a host of new commercial and business deals worth a total of AED129 billion ($35 billion). The partnerships were agreed during Monday’s state visit to the Emirates by the ruler of Oman, Sultan Haitham bin Tariq al Said.  Investment and collaboration agreements covered areas including renewable energy, green metals, […]