World Bank: Morocco’s Economic Growth to Rise to 3.3 in 2020-2021
Morocco’s economic growth is expected to pick up gradually and average 3.3 over 2020–2021, mainly driven by more dynamic secondary and tertiary activities, bolstered by high foreign investments, according to the World Bank forecast.
Significant FDIs continue to flow into Moroccan automotive industries, especially in the new Peugeot plant – that will eventually double the sector’s production capacity – as well as into logistics and trade services following the expansion of the Tangiers port, say the WB analysts.
Thanks to sound monetary policy and ample supply of fresh food, inflation is projected to average around 1 pc over the medium-term while the unemployment rate will slightly decline in 2019, adds the World Bank report.
Morocco’s Non-agricultural growth will improve (3.4 pc in 2019 compared to 3 pc in 2018), driven by better performance of phosphates, chemicals, and textiles output.
According to the World Bank Outlook, private consumption will contribute the most to growth, boosted by higher salaries and low inflation.
The WB report also cites the 2020 Budget which is expected to reflect the Government’s commitment to increase social spending financed by expanded efforts to mobilize revenue and controlling some recurrent expenditures. Subsidy policy will continue, especially for LPG (Liquefied petroleum gas) consumption.
Morocco’s current account balance is also expected to gradually improve over the forecast period due to the growth of manufacturing exports – especially automobiles, agribusiness, electronics, and chemicals – and rising tourism receipts, supported by a price easing of the main imported commodities and goods.