Foreign Investments in Morocco Rebound to Above Pre-Pandemic Levels

Rabat – The flow of Foreign Direct Investments (FDI) in Morocco totaled $1.647 billion at the end of 2021, marking a strong post-pandemic recovery, says a new report by Bank Al-Maghrib (BAM), the Moroccan central bank.

According to the report, the volume of foreign investment in the North African country rose by a year-on-year average of 77%, exceeding even pre-pandemic growth levels.

Commenting on the overall post-pandemic international economic recovery, BAM notes that the current state of global trade is a prime example of the economic rebound as the volume of traded goods and services increased by 10.1% at the end of 2021.

The recovery is slowly materializing despite the lingering high fright cost and the continuing disruptions to the global supply chain, the report explains. 

While Morocco’s economy is emerging from the COVID-19 hiatus, the World Bank (WB) warned in July that the country’s economic growth could decelerate sharply due to the adverse international situation.

Morocco’s economic growth in 2022 is expected to average 1.3%, down from 7.9% recorded a year before.

The World Bank especially underscored the problem of water scarcity in Morocco, noting that it may result in long-term repercussions on the country’s economy.

The WB is not alone in raising concerns on the state of water scarcity in the country and its potential impact on the economy.

In its report, Morocco’s central bank called for a “paradigm shift” in public policies to counter the effect of limited water resources on the national economic activities, especially in agriculture. 

The central bank also called for a “holistic” approach to boost the flow of investments into building resilient water infrastructure and avert the threat of water scarcity to Morocco’s socio-economic development.

BAM’s report further sheds light on some alarming figures indicating that climate change is set to cause a 10% to 50% decrease in the global GDP per capita over the next 80 years.

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