Morocco’s 2023 gross domestic product grew to $146 billion, after posting a more than expected growth rate at 3.4%, despite the impact of drought and inflation, the statistics agency, HCP, said.
The performance came on the back of a growth in non-agricultural activity by 3.5% and a 1.4% growth in the farming sector, as lack of rainfall continues to undermine harvest, the agency said.
Growth continues to be driven by domestic demand, which rose 3.3% lasts year, after falling 1.2% in 2022.
In 2022, Morocco’s economy grew by 2.2% as imported inflation ditched economic prospects, the agency said.
The budget deficit contracted more than expected to 4.29% as the government narrowed the debt to GDP ratio to 69.5% last year, it said.
Morocco expects the deficit to further drop to 4% this year and to 3% in 2026 as tax revenues offset higher spending on payroll and social protection plans.
