Morocco’s economy is poised for a recovery, with growth projected to reach 3.5% in 2023 and 3.7% in 2024, according to the latest Organisation for Economic Co-operation and Development (OECD) Economic Outlook.
The positive outlook is attributed to the easing of global economic tensions and a rebound in foreign demand for Moroccan goods and services. The country’s agricultural sector is expected to make a stronger contribution to economic activity compared to previous years due to higher rainfall during the winter season, an OECD report explains.
However, inflation has put pressure on purchasing power for households and businesses. The report anticipates a gradual decline in inflation over the next two years. It also highlights that further severe droughts could have a negative impact on the economic outlook.
In 2023, the agricultural sector is recovering, supported by higher rainfall, while business confidence is improving. The service sector, particularly tourism, is benefiting from strong export performance. However, female unemployment has slightly increased, while the overall unemployment rate has dropped to 11.8%.
The OECD’s overview of Morocco’s economy shows that the country is equally affected by rising global prices and the fallout of the conflict between Russia and Ukraine. The country heavily relies on energy and food imports.
The OECD report further argues that in order for Morocco to boost growth, the country should focus on reforms in education and labor market policy to enhance skills and labor market participation, especially among women.
Noting the country’s 2021 roadmap for socio-economic reforms, the report explained that the country’s New Development Model, which focuses on the digital economy and strengthening the social security system, provides a framework for the Moroccan economy.
