EBRD forecast: Morocco’s economy to grow 5% in 2021 & 3% in 2022

The European Bank for Reconstruction and Development expects Morocco’s economy to rebound by 5 per cent in 2021, before moderating to a growth of 3.2 pc in 2022.

In its latest Regional Economic Prospects report released Thursday, the Bank says the success of Morocco’s vaccination campaign will lead to faster reopening of the economy, despite a cautious resumption in tourism globally.

The economy of the North African Kingdom benefits from a good rainy season and the expected recovery in Europe, Morocco’s main trading partner, as well as the strengthening of exports from the phosphate and automotive sectors, affirmed the European Bank.

In its report, the EBRD raised its growth forecast for the Southern & Eastern Mediterranean (SEMED) region to 4.2 pc for 2021, saying the recovery in economic activity has started in most economies of the SEMED region, driven by a rebound in the agriculture and telecommunications sectors as well as limited growth in tourism and exports.

According to the bank’s forecast, the future economic rebound for SEMED region will depend on the strength of the global recovery, progress in the vaccination rollout, political developments and the implementation of reforms to the business environment.

For 2022, output in the SEMED region is expected to grow by 4.4 pc, reflecting a strong pickup in economic activity, notably in Egypt and Morocco, underlined the analysts of EBRD.