Morocco’s economy continues to display resilience in the face of adverse macroeconomic conditions, with real Gross Domestic Product (GDP) expanding by 3.4% in 2023, World Bank data indicates.
In its latest economic monitor for the country, the World Bank maintains that the Moroccan economy has continued to expand despite the slowdown in the global economy, inflationary pressure, and the devastating September 8 Al Haouz earthquake.
World Bank data suggests that the strong economic growth is mainly driven by the rebound of tourism, robust exports, and the recovery of domestic consumption.
The country’s overall “supportive” macroeconomic policies have also reflected positively on growth, the report explains.
The North African country equally witnessed a surge in Foreign Direct Investments (FDIs). In addition, the trade deficit dropped to its lowest level since 2007.
“The country has made significant progress recently, including the operationalization of the Competition Council, amendments to the Competition Law, and a landmark antitrust settlement with fuel distributors,” said Ahmadou Moustapha Ndiaye, World Bank Maghreb and Malta Country Director.
Despite the overall positive macroeconomic trend, the Moroccan economy continues to face significant hurdles as businesses and households are grappling to recover from recent shocks, the report argues.
As of 2023, a mounting number of businesses are struggling to pay their debt and the labor market hemorrhaged approximately 200,000 jobs in rural areas despite the overall economic growth. Consumption per capita also remains slightly below pre-pandemic levels.
To build on the country’s achievements, “continued efforts will need to be made, particularly in support of small and medium-sized enterprises,” the World Bank director added.