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Rabat – As Morocco’s GDP expects to grow by 3.2% in 2022, implementing a multifaceted reform agenda is crucial to achieving broad-based growth and job creation in the country, according to the World Bank’s latest report.
Titled “Morocco Economic Monitor, January 2022: From Recovery to Acceleration,” the report outlines the expected performance of Morocco’s economy and presents forecasts for 2022.
The report noted that reinforcing human capital, economic participation, and firms’ productivity would allow the country to meet its growth objectives listed in the New Development Model (NDM).
The NDM presents a nationwide vision, requiring the private and public sectors to collaborate to achieve sustainable development and economic growth.
The model also aims to enhance gender equality, draw attention to women’s role in the economy and general society, and tackle several other socio-economic challenges that aim to boost Morocco’s sustainability and development in strategic areas.
Commenting on the performance of the Moroccan economy in the past decades, the World Bank argued that “fixed capital accumulation has been the main driver of growth, with limited productivity gains and an insufficient contribution of labor despite a favorable demographic situation.”
As the national economy remains manageable considering the economic crisis amid COVID-19, the report recalled the projected growth rate of 5.3% in 2021 due to the positive performance of agriculture and the external demand for industrial and agricultural exports.
World Bank Maghreb Country Director Jesko Hentschel stressed that “the Moroccan economy will need to diversify its sources of growth to continue creating jobs and reducing poverty.”
Although the country is showing a steady recovery from the COVID-19 crisis, rising energy prices and collapsing tourism revenues are leading to an increase in Morocco’s budget deficit, the report noted.
Data from the World Bank forecasts Morocco’s GDP to grow by 3.2% in 2022. It demonstrates that debt remains among the country’s challenges.
Read Also: World Bank Forecasts 3.2% Economic Growth for Morocco in 2022
