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Morocco’s economy is expected to surpass the government’s medium-term growth forecast of 4 per cent next year. GDP is projected to reach 4.6 per cent in 2025 from 3.3 per cent in 2024, driven by economic recovery worldwide, stated Moroccan finance minister Nadia Fettah Alaoui
The government had set a growth rate target of 4 per cent for the medium term, Alaoui told the parliament. The minister said these projections will, however, be revised if global growth slows due to geopolitical tensions, particularly in Europe, or if drought hits the agriculture sector in Morocco. As part of its long-term financial stability programme, the government plans to gradually reduce the budget deficit through prudent debt management.
Morocco attracted MAD16.1 billion (USD1.6 billion) in foreign direct investment through to the end of May 2024, government spokesman Mustapha Baitas said this month. This is believed to be the second highest level in the national economy’s history.
In May, the African Development Bank (AfDB) launched its USD 13 billion five-year strategic roadmap to support Morocco’s economic growth. The strategy prioritises two main areas: promoting inclusive growth through skills development, employment, and entrepreneurship; and bolstering economic resilience to external shocks by deploying sustainable infrastructure.
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Regarding the 2024 Budget execution, Fettah stated that inflation is expected to return to levels consistent with the price stability objective, averaging 1% in the first half of 2024, compared to 7.9% during the same period in 2023, primarily due to a significant drop in food prices. During the same period, exports increased by 4.4%, imports by 2.3%, and the trade deficit decreased by 1%, equivalent to 1.2 billion dirhams.
Fettah also indicated that the current account deficit of the balance of payments should not exceed 2% of GDP in 2024, with foreign exchange reserves at Bank Al-Maghrib covering five and a half months of imports. The budget deficit showed improvement compared to the first half of 2023, decreasing to 27.5 billion dirhams, representing approximately 44.3% of the level projected by the finance law.
