Rabat – After 2021’s staggering 7.9% growth in Morocco’s economy, adverse international economic conditions are causing the economy to slow down again, prompting experts to speculate the country’s economic growth is set to average 1% in 2022.
According to a recent publication from the Arab Monetary Fund (AMF), Morocco’s economic growth is set to significantly shrink in 2022, dropping to 1% before it is expected to gain renewed traction in 2023. The AMF projects a 4% average growth in Morocco’s economy in 2023.
Morocco’s economic growth outlook is well below the 4.6% average of oil-importing Arab countries, AMF data indicates.
Regarding the inflation outlook, the AMF forecasts it would average 5.3% in 2022, its highest level in over a decade. Inflation is expected to slow down to the recommended level of 2% in 2023.
Explaining the underlying factors behind the suboptimal outlook, the AMF says that the drop in agricultural production due to the severe drought has specifically impacted the country’s economic outlook. In 2022, grain production is expected to reach 32 million quintals, almost 70% less than last year’s yield, converging reports indicate.
The improved economic outlook for 2023 is based on expectations that agriculture production would increase to 75 million quintals, the AMF report adds.
In addition to a recovery in agriculture, the AMF report suggests that the list of socio-economic reforms Morocco is planning to implement in 2023 would underpin renewed positive economic growth.
In recent weeks, Morocco’s government published a document detailing the roadmap adopted in the lead-up to issuing the budget draft law for the 2023 fiscal year.
The document details that the government would continue to heavily invest in programs dedicated to mitigating the effect of drought on the domestic agriculture sector.
In addition, Morocco’s government is set to continue funding business creation programs in a bid to address rising unemployment.
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