Morocco’s gross domestic product (GDP) is set to grow by 3.1% in 2023, the European Bank for Reconstruction and Development (EBRD) announced on Wednesday, echoing its May forecasts.
Growth in 2023 was so far supported by an improved harvest, a tourism boom, as well as slower inflation and recovering domestic demand, EBRD’s Regional Economic Prospects says, adding that as a result, unemployment decreased slightly in the second quarter of 2023.
The government increased social expenditures in 2022 and 2023 thanks to improved tax collection and non-tax revenues, and the budget deficit is expected to continue to shrink (from 5.1% of GDP in 2022 to 4.9% in 2023), the London-based institution said.
Growth is expected to reach 3.0% in 2024, reverting to pre-pandemic levels in the medium run, with accelerated reform momentum potentially improving the outlook further. Better weather conditions, easing inflation, the relative pickup in domestic and external demand, and higher investor confidence due to Morocco’s removal from the Financial Action Task Force’s (FATF) Grey List are expected to support economic activity, according to the same source.
The Regional Economic Outlook is published at least twice a year, with occasional updates.
It is prepared by the Office of the Chief Economist and the Strategy and Policy Implementation Department and provides a summary of regional economic developments and prospects, as well as the EBRD’s growth forecasts for the economies in which it invests.