Rabat – Morocco’s economy is showing signs of a robust recovery, with economic growth reaching 3.4% year-on-year in the first half of 2023, according to a report released by the European Bank for Reconstruction and Development (EBRD). The optimistic outlook comes after a challenging year in 2022 when the country faced a series of economic setbacks.
Morocco notably experienced sluggish economic growth, with a meagre 1.3% recorded, largely due to the adverse effects of a drought that affected agriculture, a key sector for the country, compounded by tighter global financing conditions.
However, the EBRD predicts that growth will rebound significantly in 2023, with an expected rate of approximately 3.1 percent.
But these projections do not take into account the recent earthquake that struck the High Atlas mountains near Marrakech on September 8, causing widespread destruction and loss of life.
The tragic quake’s full impact on the nation’s economic activity remains uncertain, as reconstruction efforts could either stimulate medium-term growth or necessitate additional financing.
The recovery in 2023 has been underpinned by several key factors. An improved harvest has bolstered the agricultural sector, while the tourism sector is experiencing a significant resurgence.
Additionally, Morocco has witnessed a slowdown in inflation, contributing to a more stable economic environment. Meanwhile, domestic demand has been also recovering, aiding in the economic rebound.
Read also: World Bank: Morocco’s Economic Growth Expected to Reach 3.1% in 2023
Unemployment rates have also shown modest improvement, falling slightly to 12.4% in the second quarter of 2023. Disparities persist, however, as these rates have remained relatively high among women (17%), youth (33.6%), and in urban areas (16.3%).
Looking ahead to 2024, Morocco is expected to sustain its economic momentum, with growth projected to reach 3 percent. This would mark a return to pre-pandemic levels and is contingent on the continuation of reforms aimed at enhancing the nation’s economic resilience.
As Morocco navigates the aftermath of the September 8 earthquake and focuses on inclusive growth strategies, there is cautious optimism that the country’s economy could continue its recovery.
