Rabat – Strong domestic demand is set to underline Morocco’s economic growth in 2023, while external demand will stagnate.
During a press conference held yesterday in Rabat, Secretary General of the High Commission for Planning (HCP), Ayachi Khellaf, said that Morocco’s 3.7% growth in 2023 would be primarily supported by a recovery in domestic production that would contribute 3.6 points.
When presenting Morocco’s economic budget for the year 2023, Khellaf revealed that the HCP currently predicts that external demand for Morocco’s exports would slow down from 5.9% in 2022 to 3.6% in 2023, as a result of adverse global economic conditions.
Regarding Morocco’s budget deficit, Khellaf noted that it should remain at an average of 5.5% of the country’s Gross Domestic Production (GDP) for the year 2023.
While the budget deficit is set to remain largely stable, Morocco’s external deficit is projected to follow a downward trajectory in 2023, the official said.
Despite the significant potential of economic recovery, adverse international conditions threaten to slow down national growth, experts say.
In a recent report, Fitch, an American benchmark rating agency, pointed out that a looming recession within the European Union would likely spillover into emerging markets, including Morocco.
Given its proximity and trade ties with the EU, Morocco is highly exposed to an EU recession, the report indicated.
The EU is currently Morocco’s largest trading partner. An average of 61% of Morocco’s exports go to the European Union.
In addition to stagnating exports, a recession in the EU would cause Morocco’s tourism industry to lose a significant portion of its annual visitors.
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