AfDB: Morocco’s growth to rebound to 4.5 % in 2021
Morocco’s GDP is expected to increase to 4.5 pc in 2021 as the country’s economy is recovering from a 5.9 pc decline in 2020 after growing 2.5 pc in 2019, says the African Development Bank in its latest report.
During the third quarter of 2020, Morocco’s exports of automotive parts and phosphate and derivatives rebounded and are expected to strengthen more in the near term as global demand improves, underlines the Bank in its 2021 African Economic Outlook.
This performance is likely to offset any continued weakness in the tourism, hotels, and restaurants sector. Consequently, the current account and fiscal deficit are expected to narrow, affirm the experts of AfDB.
Morocco has rapidly accessed emergency funding from donors, including $3 billion from the International Monetary Fund, and $460 million from AfDB to mitigate the impact of the pandemic besides the 1 billion Euro bond raised by the country, recalls the document.
These inflows bolstered foreign exchange reserves, which are sufficient to cover around 8.1 months of imports and three times the debt due in the short term.
According to the Bank’s analysis, the refinancing risk of the Kingdom is minimal and starting in 2021, the debt-to-GDP ratio is expected to decline steadily, reaching 70 pc by 2025.