Rabat – The World Bank confirmed yesterday that the Moroccan economy has shown resilience, but the private sector faces challenges, as companies and households struggle to recover from recent shocks.
The bank added in a statement published on its website that “despite various obstacles, including the slowdown in the global economy, the inflation shock, and the Al Hoceima earthquake, the Moroccan economy has shown resilience and accelerated its pace, with real output rising by 3.4 percent in 2023.”
He explained that “the growth was driven by a recovery in tourism, strong performance in export-oriented manufacturing sectors such as automobiles and aviation, and a recovery in private consumption.”
According to the statement, “supportive macroeconomic policies, including public sector expansion and fiscal consolidation strategies, contributed to this economic acceleration.”
According to the statement, Morocco has witnessed “a significant increase in foreign direct investment, which provides significant development opportunities,” while, in contrast, it indicated that the private sector faces challenges.
The bank considered that “the Moroccan economy is facing challenges; as companies and households struggle to recover from recent shocks, as evidenced by the rise in corporate insolvency cases, in addition to the labor market, which lost 200,000 jobs in rural areas in 2023, despite the economic acceleration.”
The bank expects economic growth to slow to 2.9 percent in 2024 due to the weak agricultural campaign, but non-agricultural GDP is expected to remain resilient.
On September 8, a 7.0-magnitude earthquake struck cities including Marrakech, Al Haouz, Chichaoua, Ouarzazate (north), and Taroudant (center), leaving 2,960 dead and 6,125 injured, in addition to significant material damage, according to the Ministry of the Interior.
Last June, the Central Bank of Morocco decided to reduce the main interest rate on the dirham to 2.75 percent, expecting inflation to decline during the current year.
Following a meeting of its board of directors, the central bank said in a statement that the decision comes “following tightening monetary policy measures, regular monitoring of the transmission of its decisions, and measures taken by the government to support the purchasing power of families and some economic activities.”
In 2023, the inflation rate in Morocco rose to 6.1 percent, as the Kingdom continued to be affected by rising prices of basic commodities, most notably energy, and the drought continued for the sixth year in a row.
Anatolia
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2024-07-20 19:48:38
