2023-12-03 16:53:21
This improvement in Moroccan GDP would be fueled by an expected recovery in the agricultural sector, particularly following the wave of drought observed last year which led to a significant drop in agricultural production, we can read in a recent FMA report on Arab economic prospects.
The FMA also expects the automobile industry to see improvement in the coming period, especially in light of ongoing reforms aimed at improving the investment climate by adopting new regulations for private investment .
The institution also plans an increase in remittances from Moroccans around the world.
Inflation rate
Another optimistic forecast from FMA analysts: the inflation rate in 2023 is expected to reach around 2.6%, compared to 6.6% in 2022. “The Moroccan government has taken several measures aimed at preserving the purchasing power of families, in a context of rising inflation rates, including the opening of additional credits for the year 2022, in the amount of 16 billion dirhams, to continue to support compensation expenses, the maintenance of social peace , the increase in salaries and the implementation of family compensation before the end of 2023.
Exceptional support has also been allocated to transporters with the aim of ensuring the stability of citizens’ transport costs as well as the transport of goods, and implementing a program to combat the effects of drought. This is in addition to the strengthening of the strategic stock of food, energy and health products,” explains the same source.
Growth rate of Arab economies
In Arab countries in general, the FMA anticipates economic growth in the region of around 2.2% in 2023, compared to around 5.8% in 2022, due to the impact of tighter monetary policy, decline in oil production and recent developments in the region. However, growth is expected to recover in 2024, where it is expected to reach around 3.3%.
The inflation rate in Arab countries, for its part, is expected to reach 9.3% in 2023, before falling to around 3.6% in 2024. These figures are affected by several factors, including exchange rate pressures in certain countries. Arab countries, fluctuations in the prices of energy and food products, explains the FMA.
“Policymakers in Arab countries will continue to focus on adjusting fiscal and monetary policies in response to these economic challenges. This involves rationalizing tax exemptions, reconsidering support policies, strengthening social safety nets, developing monetary policy frameworks and implementing macro-prudential policy reforms,” estimates the institution.
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