Morocco’s Economy Set to Grow 5.3% in 2021, Boosted by Agricultural Rebound

In a press release following the work of the first quarterly meeting of its council for 2021, Bank Al-Maghrib (BAM) indicated that "the value added of non-agricultural activities would progress in 2021 by 3.5% and, taking into account a cereal production estimated at around 95 million quintals (Mqx), that of the agricultural sector would rebound by 17.6%, thus bringing the growth of the national economy to 5.3%." For the year 2022, the Moroccan economy will stand at 3.2%, taking into account an improvement in non-agricultural production of 3.8% and a 2% drop in agricultural value added, under the assumption of a return to an average cereal production of 75 Mqx.

However, the achievement of these forecasts would be effective thanks to the continued recovery of economic activity, mainly supported by the 120 billion dirham (MMDH) recovery plan, the orientation of monetary policy and a certain renewed confidence in view of the progress of the vaccination campaign and the favorable climatic conditions characterizing the current agricultural season, the press release stressed, specifying that uncertainties surround these forecasts, particularly due to the evolution of the epidemiological situation and the availability of vaccines at the national and international levels.