Moroccan economy, boosted by manufacturing & tourism, to expand 2.9% in 2024 (EBRD)

Morocco’s economy is expected to grow by 2.9% in 2024, driven by a resurgence in manufacturing and tourism, according to the European Bank for Reconstruction and Development (EBRD).

The EBRD’s latest regional economic outlook, released on Thursday, highlights the resilience of Morocco’s economy despite adverse weather conditions. “The recovery in manufacturing and tourism, bolstered by strong export growth and robust domestic demand, is expected to underpin economic performance,” the EBRD noted.

Inflation, which had been a concern, has eased significantly. The consumer price index fell to 1.3% in July 2024, largely due to a decline in food and energy costs. The Bank also praised the Moroccan government’s steady fiscal consolidation, which has helped trim the budget deficit to 4.3% of GDP.

This fiscal improvement was supported by lower imports and strong contributions from key sectors, including tourism, remittances, and exports of automobiles and electrical equipment, according to the London-based institution.

In the broader South and East Mediterranean region, the EBRD projects economic growth of 2.1% in the first half of 2024, down from 2.7% a year earlier. The full-year forecast for the region has also been revised downward to 2.8%, from 3.4% projected in May, reflecting slower-than-expected recoveries in private and public investment. Contributing factors include energy sector disruptions, severe drought, and the ripple effects of ongoing conflict in the Middle East.

The EBRD publishes its Regional Economic Outlook at least twice a year, offering a detailed assessment of regional economic conditions and growth projections for the economies where the Bank is active.