2
Morocco Growth will recover to 3.5% in 2023 and 3.7% in 2024 as global economic tensions ease and foreign demand for goods and services rebounds. Since rainfall during the winter season has been higher than in the previous year, agriculture can contribute more strongly to economic activity. Inflation has put pressure on the purchasing power of households and businesses, but is expected to gradually decline over the coming two years. Severe droughts would negatively affect the outlook. Keeping inflation low and supporting the economy will require a balanced policy mix. Gradual fiscal consolidation will help to rebuild buffers that have been used to support the economy, although supports for vulnerable households should remain in place. Monetary policy has become less accommodative, but the central bank should increase rates further if inflation remains high. Structural reform priorities include boosting private investment, strengthening the role of women in the labour market and accelerating preparations to increase resilience against climate-related risks. Activity is rebounding after a weak spell Economic activity is set to accelerate in 2023 following weak growth of 1.1% in 2022. Recorded rainfall over the winter season was higher than during the previous very dry season, allowing agricultural production to recover, although precipitation is still below historical averages. Business confidence is improving, helped by strong export performance in early 2023. The services sector is benefiting from booming tourism activities that were above pre-pandemic levels by March 2023. Headline and core consumer price inflation started to decline in March 2023 and stand at around 7.8% in April year-on-year. Weak agricultural production in 2022 has contributed to lower labour market participation, particularly by women. Female unemployment has slightly increased whereas the aggregate unemployment rate has declined to 11.8%.
Morocco
Source: Bank al-Maghrib, Haut-Commissariat au Plan. StatLink 2 https://stat.link/iyjorx
OECD ECONOMIC OUTLOOK, VOLUME 2023 ISSUE 1: PRELIMINARY VERSION © OECD 2023