EBRD Forecasts 3.1 % Growth in Morocco in 2023

Economic growth in Morocco is expected to pick up to 3.1 per cent in 2023, announced on Tuesday by the European Bank for Reconstruction and Development (EBRD).
In its latest Regional Economic Prospects (REP) report, the Bank’s analysts explained the projected Moroccan economic growth by the anticipated agricultural recovery, moderate inflation and the country’s removal from the Financial Action Task Force’s (FATF) Grey List, giving a boost to investor confidence.
Growth in 2024 is projected to be in line with pre-pandemic levels, at 3.2 pc and progress on reforms could give it an additional boost, said the London-based European Bank.
However, the country remains vulnerable to increases in hydrocarbon prices, as it imports most of its energy, warned the bank’s experts, saying that global supply-chain disruptions may pose further headwinds to growth, while a worsening of global economic conditions could affect Morocco by lower demand from Europe.
The Bank is forecasting a modest economic growth in 2023 for the entire southern and eastern Mediterranean (SEMED) region. It expects a slight pick-up in gross domestic product (GDP) growth to 3.6 pc in 2023 from 3.1% in 2022 as economies across the SEMED region adapt to the impact of the war on Ukraine, the agricultural sector rebounds and reforms progress. However, the challenging global inflation outlook and political uncertainty remain downside risks.
The recovery is expected to gather pace in 2024, with average GDP growth of more than 4 pc as reforms advance in all of the region’s economies.