AfDB expects Morocco’s growth to reach 3.5% in 2024 & 3.8% in 2025

Morocco’s economic growth is expected to reach 3.5 pc in 2024 and 3.8% in 2025, driven by higher investment, according to latest projections released by the African Development Bank.

In its African Economic Outlook 2024 report, the Bank said inflation is projected to fall slightly to 4.1% in 2024 and 3.8% in 2025, as world food prices decline.

Growth prospects in Morocco could however be reduced by poor rainfall or slower economic growth in the European Union, warned the experts of AfDB, saying rising tensions related to Russia’s war in Ukraine could trigger another shock in food prices.

The country’s budget deficit could fall gradually to 4.4% of GDP in 2024 and 4.2% in 2025, benefiting from economic recovery and lower subsidies on butane gas prices, said the Bank in its forecasts.

The current account in the North African Kingdom is projected to record a small deficit of 0.4% of GDP in 2024, before slightly increasing to 0.9% of GDP in 2025, as a result of higher imports.

The AfDB report said Morocco has prepared a new development model to strengthen its structural transformation by making it more inclusive. The model promotes manufacturing, trade integration, infrastructure connectivity, and human capital development.

According to the Bank’s report, most African countries are expected to experience stronger growth rates in 2024 than they did in 2023, affirming that the Continent will retain its 2023 global ranking as the 2nd fastest-growing region in 2024 and 2025.