World Bank Forecasts Strong Economic Recovery for Morocco Despite Global Crisis

Based on several factors including the reduction of drought-related issues, the maintenance of aid policies and the easing of restrictions, the World Bank forecasts GDP growth in 2021 at 4.6% compared to -7.1% in 2020, 3.4% in 2022 and 3.7% in 2023. "While the majority of developing countries in the Mena region have signed contracts with vaccine suppliers, only Morocco has launched an extensive vaccination campaign for a large part of its population," the World Bank notes in its new forecast published on June 8, 2021.

However, the recovery will be slow in the manufacturing industries and the services sector. Regarding the current account deficit, it should "stabilize below 4% of GDP, supported by the restart of exports and imports. As for the budget deficit, it will only regress slowly, the government having chosen to wait for the recovery to be confirmed before embarking on fiscal consolidation measures," added the World Bank. For the outlook in the Middle East and North Africa, regional output could grow by 2.4% in 2021.

Moreover, the region would benefit from the recent recovery in oil prices, as well as the increase in external demand and the easing of economic impacts during the pandemic. In addition, with the successful rollout of vaccination, the easing of restrictions, the relaxation of oil production cuts and others, growth should reach 3.5% by 2022. Furthermore, at the level of oil-exporting countries, the increase in oil prices will allow growth and a recovery in public revenues. Prices are expected to average $62 per barrel in 2021 and 2022. This situation will also benefit other countries such as Saudi Arabia, Egypt, Libya, Lebanon and Tunisia, the World Bank stressed.