IMF Reports Strong Recovery of Moroccan Economy Post-Pandemic

According to the document made public, the IMF estimates that economic activity in Morocco has recovered most of the ground lost during the 2020 global recession. This is thanks to fiscal and monetary stimulus measures, the rebound in exports, the dynamism of remittances from Moroccans living abroad and the exceptional harvest after two years of drought, the report specifies.

This post-Covid recovery should be strengthened by the results of the policies implemented to fight the pandemic and accelerate vaccination, the institution indicates. "After falling by 6.3% in 2020, production has increased by an average of nearly 8% during the first two quarters of 2021. The above-average harvest has boosted agricultural production after two consecutive years of drought," it explains.

Furthermore, the rise in global commodity prices as well as the increase in transportation costs and the disruption of global distribution chains have led to a rise in prices. The level of inflation remains nevertheless under control.

As for the budget deficit, it has increased over the first ten months of the year, standing at "4.9% of GDP in October, compared to 4.6% for the first ten months of last year and 3.5% in 2019". An increase attributable to the significant expenditure made by the State during the pandemic to support several sectors. Another main factor would also be the narrowing of tax revenues.

This year, the IMF forecasts GDP growth of 3%, with agricultural production returning to average levels and non-agricultural activity continuing to recover.