Morocco: EBRD forecasts solid economic recovery in 2021
The European Bank for Reconstruction and Development (EBRD) expects Morocco’s economic growth to reach this year 4.5 per cent after a 6.3 per cent contraction in 2020 due to the global health crisis which affected trade exchanges, air transportation, tourism…
In its latest “Regional Economic Prospects” report, the European bank says “a solid recovery” is expected in Morocco due to the success of vaccination campaign rolled out, leading to an increase in tourism.
The Moroccan economy is also likely to benefit from a good rainy season, the expected recovery in Europe, the country’s main trading partner, and the strengthening of exports, underlines EBRD in its report.
In 2022, a slower rate of expansion is forecast, at 3.5 per cent, as the pace of growth returns to pre-pandemic levels, adds the Bank in its projections.
Regarding its outlook for the whole southern and eastern Mediterranean region (SEMED), EBRD raises its growth forecast to 3.5 pc in 2021 and 4.6 pc in 2022.
The return to growth to SEMED region follows a 2.1 pc decline in gross domestic product (GDP) in 2020. However, the Bank warns that the speed of recovery would vary from economy to economy, reflecting the slow recovery in tourism, mounting fiscal pressures and political uncertainty across the region.
For 2022, the EBRD economists expect continued growth of 4.6 per cent, provided the SEMED region’s economies are supported by structural reforms, a recovery in foreign investment, and stronger trade flows.