IMF projects Morocco’s economic growth at 4.5 % in 2021

The International Monetary Fund has lowered slightly its economic forecasts for Morocco saying the Kingdom’s growth is expected to reach 4.5 pc in 2021, while the Fund’s previous projections for the country were estimated at 5 pc.

The IMF new outlook takes into account several internal and external factors including the high uncertainty that surrounds the global economy due to the impact of the Covid-19 pandemic which continues to affect tourism, travel industry, trade, businesses…

According to the Fund’s new projections, unemployment in Morocco is expected to drop from 11.9 pc in 2020 to 10.5 pc in 2021 and 9.7 pc in 2022.

The Moroccan government and the Central Bank are expecting the country’s economy to grow by over 5.2 pc in 2021 due to better agricultural season and progress of the vaccination campaign against Covid-19.

In its latest outlook for the global economy, the IMF says the world economy is expected to grow by 6 pc in 2021 and 4.4 pc in 2022, compared with previous forecasts of 5.5 pc and 4.2 pc respectively.

But the Fund warns against a high degree of uncertainty that surrounds these forecasts with many possible downside and upside risks related to the evolution of the covid pandemic, the worldwide vaccination campaigns and financial situation around the world.

 

Globally, growth is expected to reach 6% in 2021 after a contraction of -3.3% in 2020, “reflecting additional fiscal support in some major economies and the expected recovery in the second half of the year from vaccines,” the IMF said.