Morocco’s Central Bank expects meagre cereals harvest due to drought

Drought has shattered prospects for a good harvest this year with only 2.5 million tons expected, down from 5.51 million tons last year, Morocco’s central bank said.

The bank explained that a shortage of rainfall led to a drop in cereals planted area to 2.5 million hectares, compared with 3.7 million hectares last year.

As a result of a drop in agricultural output by 6.4%, overall growth will fall to 2.1% in 2024.

On the monetary side, the bank kept its key interest rate at 3%, judging it appropriate to further lower inflation to 2.1% this year. Last year, inflation soared to 6.1%.