Morocco’s economic growth recovered slightly in the 1st half of 2023, reaching 3.4% as of June, according to the European Bank for Reconstruction and Development (EBRD), based on Regional Economic Prospect data for the southern and eastern Mediterranean (SEMED) region published last Wednesday.
The Kingdom’s overall economic growth is forecast to be 3.1% in 2023, up from the 1.3% recorded last year due to drought and certain other factors, according to EBRD.
The estimates do not take into account the effects of the earthquake that struck a large swath of south central Morocco in early SeSeptember. Determining the impact of the quake on total economic activity is challenging: while reconstruction spending may promote medium-term development, it may also raise the demand for finance.
This year’s better harvest and the continuing expansion of tourism in the kingdom, as well as decreasing inflation and improving domestic demand, have all contributed to growth in 2023. As a result, overall unemployment declined marginally to 12.4% in the second quarter of 2023, with higher rates among women (17%), youth (33.6%), and urban regions (16.3%).
Growth is predicted to be 3% in 2024 before returning to pre-pandemic levels in the long term, with increased reform momentum potentially enhancing the scenario even further.
Slow and weak economic growth influenced the overall SEMED region. Egypt declined to 4.1% in the first half of 2023, Jordan upped to 2.8% in the first quarter of the same year, Tunisia is rebounding to 1.9%, and Lebanon had no growth reported.