Morocco’s economic growth to recover to 3.6% in 2024- HCP

Morocco’s economy is expected to grow 3.6% amid a recovery in foreign and domestic demand and assumptions of an average farm output as well as a drop in prices of commodities in global markets, the planning agency HCP said.

This year, however, economic growth would stand at 3.3% after a below-average cereals harvest of 5.51 million tons, which is still 60% higher than last year when farm output “brutally” decreased due to drought, HCP said in its new forecasts.

A drop in global commodities prices would reduce Morocco’s spending on subsidies which are expected to drop to 2.2% of GDP in 2024, compared with 2.7% in 2023, it said.

The budget deficit would stand at 5% of GDP in 2024 and 4.8% in 2023 as the government maintains spending on social programs and economic stimulus.

Public debt would thus stand at 86.5% of GDP after 85.8% expected in 2023. Foreign exchange reserves would still cover 5.2 months of import needs next year, a comparable level to this year.