The growth would not fully offset Morocco’s expected economic contraction of 5.8%.
Rabat – Morocco’s Minister of Economy Mohamed Benchaaboun said on Monday in Rabat that the nation will likely see economic growth of 4.8% in 2021.
The minister announced the outlook before the Finance and Economic Development Committee at the House of Representatives. The forecast accompanies the execution of Morocco’s 2020 Finance Bill and the development of the 2021 finance bill.
Benchaaboun announced the economic growth factoring in a scenario by the International Monetary Fund (IMF), which forecast a 2021 growth of 5.2% on the international level and of 5.3% in Europe.
The minister attributed Morocco’s expected economic growth to an upcoming increase in agricultural value by 11%. The figure comes under the assumption that cereal harvest will reach 70 million quintals, citrus production will increase 29%, and production will increase by 14% for olives.
During the session, Benchaaboun also evoked Morocco’s three-year budget programming, suggesting that Morocco’s economic growth could stand at 4.2% in 2022 before reaching 4.6% in 2023.
The minister also stressed the need to implement a policy to support economic recovery through public investment, enhancing employment, supporting financing, and developing sectoral strategies for the most affected sectors through the “pact for economic recovery and employment.”
The pact for economic recovery and employment” is part of Morocco’s economic recovery plan that the Economic Monitoring Committee (CVE) launched in May, when they also introduced other measures. The pact’s signing occured on August 6 in Rabat.
The minister’s declaration follows a 2021 forecast by Bank Al Maghrib. In its forecast, Morocco’s central bank predicted that the country will see economic growth of 4.7%.
Bank Al Maghrib attributed its estimate to a predicted increase of 12.6% in agricultural added value, under the assumption of a cereal harvest of 75 million quintals.
The bank also estimated an improvement of 3.7% in added value in non-agricultural sectors.
In addition to the efforts Morocco is deploying to revive vital sectors such as tourism, Morocco’s Head of Government Saad Eddine El Othmani has urged ministerial departments to rationalize spending in drafting Morocco’s 2021 finance bill, in light of the COVID-19 crisis.