Morocco’s Economy to Grow by 2.4% in 2023; 3.6% in 2024 (IMF)

Morocco’s economy is expected to grow by 2.4% in 2023, and by 3.6% in 2024, according to the International Monetary Fund (IMF).

This came in the financial institution’s “World Economic Outlook” report, published Tuesday in Marrakech that is hosting the annual meetings of the IMF and the World Bank.

“Growth will strengthen in 2023 compared to 2022, because a real recovery took place during the first half of the year, before the earthquake. We have observed a return to normal in several sectors, notably tourism,” underlined Daniel Leigh, head of the global economic studies department within the IMF, during a press conference dedicated to the presentation of the report.

“This growth will also be supported by reconstruction. The budgetary envelope mobilized after the earthquake, which amounts to around 10% of Morocco’s GDP, will contribute to strengthening this recovery,” he said.

Concerning the inflation rate, which stood at 6.6% in 2022, it should decline to 6.3% in 2023, then to 3.5% in 2024, underlined the financial institution.

As for employment, the IMF forecasts that the unemployment rate will increase from 11.8 to 12% at the end of this year. A decline is however expected in 2024, with this rate expected to fall to 11.7%. In this report, the Fund’s analysts also highlight that the current account balance is expected to increase from -3.5% in 2022 to -3.1% in 2023, then to -3.2% in 2024.

Overall, global growth is expected to slow to 3% in 2023, then 2.9% in 2024 (compared to 3.5% in 2022). For the Middle East and North Africa (MENA) region, growth is expected to slow down even more pronouncedly, from a rate of 5.6% in 2022 to just 2% in 2023. A rebound is, however, expected in 2024 for the region, which will achieve a 3.4% growth.