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Rabat – After reaching record levels in 2022 at 6.6%, inflation in Morocco is expected to ease, yet remain elevated by the end of 2023, with 5.5%, according to Morocco’s central bank, Bank Al-Maghrib (BAM).
Following their first quarterly meeting in 2023 on Tuesday, BAM issued a statement explaining that “after reaching 6.6% in 2022, its highest level since 1992, inflation should remain at high levels in the medium term.”
The BAM further explains that the high rate is mainly due to the “surge in prices of certain food products included in the forecast.”
The central bank, however, expects Morocco’s economic outlook to improve in the second half of 2023 thanks to the various mitigation efforts that the government is undertaking.
As international and external pressures will likely continue easing throughout 2023 and 2024, inflation is predicted to drop even further to 2.3% in 2024, nearing the recommended 2% rate, the statement adds.
Inflation continues to be a major issue in Morocco and other countries around the world. In response, central banks around the world are raising benchmark interest rates to record levels, including in Morocco where interest rates were hiked three times in less than two years.
The rise in benchmark interest rates will likely affect global economic growth, at a time when the European Union – one of the world’s largest economies- is already grappling with the possibility of an energy-induced crisis. The fallout from such a scenario will be dire for developing countries, including Morocco. Around 60% of Morocco’s exports go to Europe, making the country exposed to the potential crisis in the Eurozone.
Read Also: Morocco Tightens Monetary Policy Further, Raising Interest Rates to 3%
