Rabat – The World Bank (WB) has maintained its growth forecasts for Morocco by 3.8 percent for 2017, the same level as the April estimations, which were revised downwards (-0.2 points). According to the institution, Morocco will be one of the best performers in the MENA region, thanks in particular to its reforms.
According to the World Bank’s June 2017 World Economic Outlook, Morocco “is beginning to undertake reforms in its business environment, such as the launch of Islamic banks to ease structural bottlenecks and improve private sector activity,” notes the WB.
Overall, growth will be limited to 2.1 percent in the MENA region, while the WB forecasts that global economic growth will strengthen to 2.7 percent in 2017 as a pickup in manufacturing and trade, rising market confidence, and stabilizing commodity prices allow growth to resume in commodity-exporting emerging market and developing economies.
With an expected 3.8 percent growth rate for Morocco, the World Bank places the Kingdom as the third fastest growing country, after Djibouti (7 percent) and Egypt (4.3 percent). However, growth in Morocco is expected to decline in 2018 to 3.7 percent and 3.6 percent in 2019.
The World Bank reports also highlighted Morocco’s consolidation programs in contributing to estimated fiscal improvements by the start of 2017.
As for tourism, the WB regards the sector, which is an important source of revenue for several oil importers, to be at risk. The reports states that the sector remains weak, but has only recently begun to stabilize in Morocco and Egypt. The WB lauded Morocco’s efforts to expand tourism through bilateral initiatives. The bank believes that the Kingdom’s tourism marketing initiative with China in 2016 may help cope with some of these risks.
Morocco’s agricultural production is projected to rebound under more normal weather, notes the WB.
