Morocco Earthquake Threatens Economic Growth as Nation Faces Recovery Challenges

Morocco’s economic prospects are encouraging. According to the 2022 data from the European Bank for Reconstruction and Development (EBRD), Morocco’s economic growth rate will be 3.1% by 2023, higher than that of Algeria, whose forecasts are around 2.1%, or Tunisia (2%).

The World Bank and the International Monetary Fund (IMF) have the same prospects, announcing a 3.1% growth in Morocco’s Gross Domestic Product (GDP) in 2023, compared to 2.1% in 2022, and 3.4% in 2024 if the ongoing reforms are successful. But concerns are emerging after the earthquake that occurred on Friday. These international organizations are waiting to see how the country will recover economically from this tragedy, which comes in a context of galloping inflation due to the Ukrainian crisis, analyzes El Debate.

Tourism is one of the lungs of the Moroccan economy. Tourism revenues increased by 52% in the first quarter of 2023, reaching $2.4 billion, or 52% more than in 2019, according to data from the World Tourism Organization (UNWTO). The industrial sector in Morocco is also experiencing strong growth thanks to the automotive, textile and agri-food segments.

Public and private investments have also recorded an increase in the infrastructure and education sectors. Foreign investors have rushed more to Morocco since its exit from the FATF gray list, after sustained reforms in the fight against money laundering.