World Bank Forecasts Morocco’s Economic Growth to Slow to 3.2% in 2022

Economic growth is expected to slow this year compared to the rebound in 2021, with the Kingdom’s agricultural performance returning to historical averages after the strong performance of the primary sector in 2021, explains the World Bank in its latest report on global economic prospects, reports La Vie Eco.

"This trend would be mainly due to double-digit growth in the agricultural sector thanks to favorable rainfall and a significant base effect following a pandemic year," the newspaper specifies.

However, this recovery will not be observed in all sectors, as it remains "asymmetric" with some sectors heavily affected. The Bank cites for example the tourism sector, which has been severely affected by the pandemic, or the tertiary sector and export services sectors, which are "still struggling to regain their pre-Covid level."

On the macroeconomic level, the financial institution noted that Morocco has been able to well manage the budget deficit, which should decrease to 5.9% in 2021. "This improvement is supported by the expected recovery of indirect taxes, which should offset the growing expenditures related to the wage bill and subsidies for liquefied petroleum gas," the report notes.

"Favorable development prospects are expected and are part of the reform process launched by Morocco, including that of the public sector, the modernization of the social protection system and the support for the recovery of private investment," it concludes.