EBRD expects Morocco’s growth to reach 3 % in 2024 and 3.6 % in 2025

The European Bank for Reconstruction and Development (EBRD) expects Morocco’s economic growth to reach 3 per cent in 2024, before rising to 3.6 per cent in 2025, supported by a recovery in external demand and government investment.

Following a slowdown in 2022, the country GDP growth picked up to 3.2 % in 2023, driven by the recovering agricultural sector and robust tourist receipts and growth in the transportation sector, said the Bank in its Regional Economic Prospects Report published Wednesday.

The Moroccan economy proved its resilience. Despite additional expenditure related to the post-earthquake reconstruction and expanding targeted social protection spending, inflation eased to 0.3 per cent by February 2024.

However, Morocco’s high dependence on energy imports and seasonal agricultural production makes the economy vulnerable to climate risks, underlines the report.

In its projection for the whole southern and eastern Mediterranean region, EBRD expects growth to accelerate from 2.7 % in 2023 to 3.4 % in 2024 and 3.9 % in 2025. This represents a downward revision compared with the previous forecast due to the negative impacts of the war in Gaza on the region’s tourism and investments.