Morocco: Government expects 3.7% growth in 2024

The Moroccan government has released its macroeconomic forecasts for 2024, expecting a growth rate of 3.7% while revising downwards its 2023 growth forecast to 3.4% instead of 4%, due partly to drought and inflation.

In a presentation at the Moroccan parliament, minister in charge of the budget Fouzi Lekjaa said the forecast will be taken into account in next year’s budget.

He said the expectation was based on a hypothesis of a cereals harvest of 7.5 million tons, dropping prices of subsidized cooking gas and a cheaper dollar as well as a slowing inflation to 3.4% from 5.6% this year.

The minister also pointed to the impact of drought in 2022 which led to a loss of 280,000 jobs in the year ending in the first quarter of 2023, leading to a surge in unemployment rate to 12.9%.

He said the government measures to support the economic fabric helped contain the impact of imported inflation and promote investments.

The removal of Morocco from the GAFI and the EU’s grey lists as well as the successful bond issue in addition to the IMF’s $5 bln flexible credit line have all bolstered Morocco’s attractiveness for foreign investments, he said.

The budget deficit is expected to remain within expectations at 4.5% this year, before retracting to 4% next year, he said.