How Morocco shunned double digit inflation

Inflation which stood at 5% in 2022 could have soared to 10% had it not been for proactive measures taken by the government to protect the purchasing power of citizens, finance minister Nadia Fettah Alaoui said.

Morocco had increased allocations to the compensation fund to 40 billion dirhams, offered transporters help, while the central bank raised the benchmark interest rate ending its quantitative easy policy.

These measures helped maintain inflation at 5% in 2022 despite soaring fuel and food prices in the international market.

Phosphates revenues and the improvement of exports helped mitigate the impact of rising prices of energy imports on the trade balance, she said.

The government expects the economy to grow 4% this year from 1.3% last year which was marred by the worst drought in decades.

Inflation is expected to slow to 1.3% this year as commodities prices are seen returning to normal levels.