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Rabat – The African Development Bank (AfDB) has projected that Morocco’s real gross domestic product (GDP) will grow at 3.7% in 2020 and 3.9% in 2021.
“The medium-term economic prospects in Morocco remain favorable,” said the AfDB in its annual report on the “African Economic Outlook,” presented at the bank’s headquarters in Abidjan on Thursday, reported Maghreb Arab Press (MAP).
The report added that, since 2013, the manufacturing or secondary sector remained 26.1% on average, while the agriculture sector’s contribution to GDP also remained at 12.1% on average.
Morocco’s budget deficit, financed by the domestic market, was 3.6% of GDP in 2019. The budget deficit, representing the amount Morocco will have to borrow in order to meet its budget each year, is expected to reach 3.3% of GDP in 2021, thanks to a better tax performance and spending control.
Accumulated treasury debt, estimated at 65.3% of annual GDP in 2018, is expected to drop slightly to 65.1% in 2019, then to 63.1% in 2021, under the effect of more robust real GDP growth.
Morocco’s current account deficit, which includes the trade deficit and net payments, was 5.5% of GDP in 2018 due to Morocco’s purchase of oil and imports of capital goods. The account deficit should decrease from 4.6% in 2019 to 3.9% in 2020, then to 3.7% in 2021.
The AfDB estimated that inflation in Morocco will be about 1% by the end of 2021.
The bank noted that Morocco’s strategic geographic position can serve as a hub for foreign companies wishing to operate or gain a foothold in Africa.
The AfDB added that the amendment of Morocco’s PPP (Public-Private Partnership) law and the advanced regionalization policy offer investment opportunities for the private sector, stressing, however, that agriculture’s strong dependence on climate could slow down growth.
