Rabat – Morocco has proved to be strong in the face of economic adversity, having nurtured a stable and steadily growing economy throughout the global financial crisis. This could well attract investments and potentially see Morocco thrive in the coming months and years. Here is a short look at the current state of the economy.
Growth
The first quarter of a financial year can be a tentative time for many economies, and a good start to the year can be a major advantage. Morocco’s economy grew by 4.3 percent in the first quarter, up from 1.7 percent the year previous, perhaps showing signs of a strong year to come.
A large portion of the economy is made up of the agriculture sector, and this quarter’s growth was largely a result of higher output in this area. This bodes well for the agricultural industry, which suffered from a debilitating drought in 2015.
World Bank
The World Bank, which combats poverty worldwide, has also predicted a good run for the economy, provided macroeconomic policies are pursued and improvements to the overall structure of the economy are made. These suggested improvements include greater access to public transport as well as the modernising of public administration, which would cultivate a strong economic environment through greater efficiency and empowerment in the system.
Rising world oil prices are unlikely to affect the overall growth of the economy, as Morocco has low levels of external debt. The biggest risk to the economy as it stands is conflict in the MENA (Middle East and North Africa) region, which has had significant implications on all economies in the area in the past.
Investment
The current economic climate in Morocco could attract a good level of investment as opportunities to have a share in the growing industries become increasingly lucrative. Those investors trading on the global markets or involved in their own enterprise have a variety of choice for investment, including tourism and renewable energy.
More investment in these areas should translate to even more growth further down the line, and it is likely that most industries will see decent growth of their own if the right investors are attracted.
Tourism
As an incredibly popular tourist destination, much of Morocco’s trade benefits from people visiting the country. Although relatively untouched by the global financial crisis, many of the home countries of tourists are still suffering, impacting on tourism numbers.
Despite this, conflict in neighbouring countries has caused an increase in Moroccan tourism, which is now seen as one of the safer options in the MENA region while having a similar climate and culture. Further investment in this sector, therefore, will bring with it a high chance of prosperity and may encourage further growth.
Morocco looks to be in a very strong position economically, making leaps towards decent economic growth. After the drought in 2015, the government now has the opportunity to focus on improving the various different sectors of the economy through investment and ensuring that Morocco’s good run continues throughout this year and into the next.
