AfDB: Morocco’s Economic Growth to Increase to 3.9 in 2021

The African Development Bank (AfDB) expects Morocco’s economic growth to reach 3.7 pc in 2020 and 3.9 pc in 2021 from a 2.9 pc growth posted last year.

In its African Economic Outlook 2020 report, the African bank says the projected GDP in Morocco is supported by the sustained efforts made to improve macroeconomic conditions to overcome regional and international challenges.

The report also underlines the economic attractiveness of the North African Kingdom, which has become a strategic hub for foreign companies looking to operate or set up business in Africa.

The amended law on public–private partnerships and the advanced regionalization policy offer new investment opportunities.

However, the agricultural sector’s strong dependence on the climate could be a drag on growth, say the AfDB analysts, noting that the country faces some structural challenges. These include education and training that meet the needs of the private sector as well as youth unemployment.

The report also stresses the importance of good governance, the modernization of public administration and the role of private sector in promoting competitiveness and productivity.

Regarding the economic situation in Africa, AfDB says growth has stabilized in the continent at 3.4 pc in 2019 and is expected to rebound to 3.9 pc in 2020 and 4.1 pc in 2021.

For the first time in a decade, investment in Africa accounted for more than half the continent’s growth, with private consumption accounting for less than one third.

The 2020 Outlook highlights, however, that growth has been less than inclusive. Only about a third of African countries achieved inclusive growth, reducing both poverty and inequality.