Rabat – The IMF economic outlook forecasts that Morocco’s consumer prices, the average price of a basket of goods and services in a given country, will drop from 1.4% in 2021 to 1.2% in 2022, favorably impacting purchasing power in the North African country.
The drop in the Consumer Price Index (CPI) in 2022 in Morocco resists the overall trend in Middle East and Central Asia where CPI will continue to mount in value by 8.5%, slightly decreasing from 11.7% in 2021, according to the IMF report.
The report, titled “IMF World Economic Outlook,” details that Morocco’s Real Gross Domestic Product (RGDP), Gross Domestic Product adjusted for inflation, is expected to grow at a slower rate of 3.1% in 2022, decreasing from 5.7% in 2021.
Real GDP in Morocco is forecasted to grow at a faster rate of 3.4% in 2026, according to the IMF’s assessment.
Regarding Real GDP growth, Morocco trails behind the average growth projections for the Middle East and Central Asia set at 4.1% and 3.7% for 2022 and 226 respectively.
While the world is still struggling to control the spread of the Delta variant of COVID-19, the IMF has revised the global economic growth downwards to 5.9.
It predicts that the risk of new variants emerging cloaks the global economy’s prospects for a full economic recovery, especially for low-income counties with limited access to COVID-19 vaccines.
The report cites pandemic-caused labor shortage as a major factor in supply disruptions worldwide, stating that the recovery of intensive-contact sectors is lagging behind overall recovery, causing further supply chain disruptions.
According to the IMF, developing markets remain under the constant threat of rising inflation as their limited financing capabilities fall short of the needs of their economies, causing governments to withdraw support policies faster than their markets’ recovery rates.
