The IMF has projected that Morocco’s economic growth rate will reach 4.5% by 2024, up from 3.1% in 2018.
Rabat – The International Monetary Fund (IMF) expects the global economy to lag next year, it said in a report Tuesday—but predicted that Morocco will see increased economic growth.
Morocco’s real GDP growth rate, which was 3.1% in 2018, will increase to 3.2% in 2019 and reach 4.5% by 2024, the IMF projected. That rate is higher than its predictions for any advanced economy, including the United States and European Union countries, which the IMF said will experience an overall growth rate of only 1.8% in 2019.
Stuttering growth in advanced economies is the primary reason behind the IMF’s grim economic forecast for 2019. The global growth rate will lag to 3.3% this year—a downgrade from the IMF’s January forecast for 3.5% growth.
Though the slowdown will hit MENA region economies as well, the region’s growth rate will increase significantly by 2020, reaching 3.2% after 1.8% last year.
“We’re challenging the region to embrace ambitious reforms,” Ferid Belhaj, World Bank vice president for the Middle East and North Africa region, said last week. He explained that despite the seemingly good economic prospects, the region must address its structural challenges before it can see long-term improvements.
But Morocco remains one of the region’s most robust economies, the report affirmed. It is the only economy in North Africa expected to see consistently accelerated growth through 2024.
Morocco’s projected 2024 growth rate was the fourth-highest of all MENA region nations, behind only Egypt, Djibouti, and Mauritania. And Morocco’s unemployment will also go down, the report said. Morocco’s expected 2020 unemployment rate is 8.9%, compared to 9.8% this year.
Morocco has long boasted one of the region’s most stable economies, and recent financial reforms and increased economic diversification have helped it regain its footing after several years of slowing growth.
The IMF lauded such reforms after a two-week visit to the country in April but warned that high unemployment and enduring social inequality threaten sustainable growth in Morocco.