Morocco Economic Forecast
June 7, 2022Annual GDP growth weakened in Q1 2022. Drought conditions drove a 12.1% contraction in the agricultural sector. Rising inflation due to higher commodity prices arising from the war in Ukraine, a reduction in agricultural employment, lower agricultural income and slower growth in remittances combined to undermine private consumption, while rising commodity prices led to a widening of the trade deficit. More positively, the lifting of a flight ban in February boosted tourism, while a receding Covid-19 wave buoyed the services sector. Activity is set to improve during Q2, as Covid-19 restrictions are relaxed and recent rains bring some relief to farmers. However, with much of the harvest already lost, this sector will remain a drag on growth. Elevated commodity prices will continue to put pressure on the purchasing power of consumers, as well as the external and fiscal balances.
Morocco Economic GrowthAfter posting the second-fastest growth rate in the region in 2021, growth will slow this year on worsening terms of trade and a decline in agricultural output. However, looser Covid-19 restrictions and a supportive fiscal policy will buoy domestic demand. Key risk factors include further rainfall deficits, additional spikes in commodity prices and new Covid-19 variants. FocusEconomics analysts project the economy to expand 2.2% in 2022, which is down 0.4 percentage points from last month’s forecast, and to grow 4.1% in 2023.
Morocco Economy Data
5 years of Morocco economic forecasts for more than 30 economic indicators.
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|Bond Yield||3.02||0.0 %||Dec 31|
|Exchange Rate||9.56||-0.29 %||Dec 31|
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