Morocco’s Unemployment Remains Above Pre-COVD Levels

Despite the robust rebound of economic activities in 2021, Morocco’s unemployment rates remain stubbornly above pre-pandemic levels at 11.8%.

Offset by the COVID-induced global recession, unemployment peaked in 2020 in Morocco, reaching a staggering 12.2%, according to the International Monetary Fund (IMF) data.

As the market reopened in 2021, the unemployment rate in the North African country edged lower, settling at 11.8%, the source points out.

With economic recovery continuing to pick up momentum throughout 2022, the IMF projects that the unemployment rate will decrease to 11.3 in 2022. They anticipate unemployment to continue on a downward trajectory to reach 9.3 on the horizon of 2026.

Unlike unemployment, inflation continues to hike, going from a 1.3% average in 2021 to a 1.8% average in 2022, weighing down consumer purchasing power in the country.

Consumer purchasing will likely decrease throughout 2023 to reach 1.6% before rising again to the 2% on the horizon of 2024 and 2026, threatening to exceed the threshold that Morocco’s central bank is arguing should be maintained.

As the government raced to subsidize grains to avert rising prices of bread, an essential staple to the Moroccan diet, rising prices of vegetable oils and poultry were especially felt across the country.

Pandemic-related uncertainty clouds Morocco’s medium-term growth prospects. However, the IMF assures that rapid implementation of reforms will brighten the country’s medium-term economic growth prospects.

Supported by robust exports and a sound monetary policy, Morocco’s deficit is edging closer to pre-pandemic levels. Morocco is emerging post-pandemic with a stronger international reserve position, explains the IMF.