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Rabat – Morocco’s gross domestic product (GDP) is expected to reach a growth of 4.6% in 2021, according to projections by the World Bank.
The institution made the assessment in its “World Economic Outlook” for the MENA region, saying that Morocco’s GDP growth will be due to “several factors, including reduced drought-related problems, continued accommodative policies, and the easing of restrictions on internal travel.”
Compared to the 2019-2020 season, Morocco witnessed in 2021 a good winter season with remarkable rainfalls.
The heavy rainfalls increased the country’s water reserves and helped its agriculture season.
The Ministry of Agriculture said earlier this year that the rainfall has a “positive impact” on the agriculture season.
The rainfall also improved the environment for plant growth and facilitated maintenance work for farmers.
The downpours also significantly improved dams’ reservoirs, helping their filling rate reach 50%.
The reservoirs of the main dams in Morocco reached nearly 8.04 billion cubic meters (m3) on March 6.
Dam reserves had previously accumulated 7.38 billion cubic meters, representing a fill rate of 47.4%.
The GDP growth forecast is also attributed to the easing of restrictions imposed on internal movements or travel, the World Bank said.
Morocco has been gradually easing its COVID-19 restrictions in the past six months after strict measures following the outbreak of COVID-19 in March 2020.
Should the current configuration continue, the World Bank projects Morocco’s economy to record a 3.4% growth in 2022.
For the MENA region as a whole, the World Bank forecasts a 2.4% growth in 2021.
The bank said that the forecast corresponds to more sustained growth than expected. The percentage, however, remains below the average of the last decade between 2010-2019.
The bank noted, however, that these projections are subject to change and depend to a large extent on fluctuations in the global market (especially oil prices for oil-exporting MENA countries) and how each country deals with the COVID-19 crisis.
As many countries in the region accelerate their vaccination campaigns and ease travel restrictions, the World Bank expects the regional economic outlook to be mostly positive, with a projected growth of about 3.5% in 2022.
