Morocco’s 2024 challenges: water scarcity, inflation- World Economic Forum

Morocco should prepare to address the challenge of drought and inflation in 2024, the World Economic Forum (WEF) said.

In its Global Risks Report, the WEF identified water supply and inflation among the most pressing issue Morocco would face this year as the country braces for the sixth consecutive dry year.

Inflation was contained in Morocco thanks to a combination of monetary tightening by the central bank and government measures to curb imported inflation.

Inflation has slowed from 10% in February to stand at an average 4.5% in the whole 2023, according to the planning agency, which expects inflation to further slow to 2.8%.

But economists fear inflation would pick up due to an expected rise in food prices due to drought-stricken crops.

Moroccan agriculture minister Sadiki has said the irrigated area has been reduced to 400,000 hectares instead of 750,000, as rainfall was 70% down compared to a normal year.

The World Economic Forum also mentions unemployment as a risk in Morocco considering job losses in farm-dependent rural areas.