Morocco’s economic recovery could be “gradual” and “uneven” in the short term, the World Bank (WB) said in its latest report monitoring the economic situation in Morocco.
The WB forecasts that real GDP growth will rebound to 4.6% in 2021, supported by the strong performance of the agricultural sector and a partial recovery of the secondary and tertiary sectors, the report noted.
In this baseline scenario, the Bank estimated that agricultural production exceeds historical trends, the vaccine campaign is progressing as planned, monetary policy remains accommodative, and the fiscal consolidation process is gradual, with a moderate reduction in the deficit starting in 2021.
After two consecutive years of drought, preliminary data suggest that the 2020/21 agricultural season will be strong, the same source said, noting that abundant rainfall in recent months has led to a substantial revision of production forecasts for Morocco’s main crops.
The recovery of the manufacturing and services sectors is expected to be gradual with value added growth of 3.4% and 3.1% respectively, initially limited by the slowdown of Morocco’s trading partners at the beginning of the year and by a prolonged return of international tourism.
In addition, the WB said that Morocco stands out as a country that has taken advantage of the Covid-19 crisis to turn it into an opportunity and launch an ambitious program of transformative reforms.