Casablanca – Morocco’s economy is set for notable growth, with the Gross Domestic Product (GDP) projected to rise to 3.5% in 2024 and further to 3.8% in 2025, according to the latest “African Economic Outlook” report by the African Development Bank (AfDB). These optimistic projections were highlighted during the AfDB’s 2024 Annual Meetings in Nairobi, underscoring the country’s potential for economic expansion.

Investment surge fuels growth

A key factor driving this projected growth is a surge in investment activity, which indicates increasing confidence in Morocco’s economic landscape. This influx of investment is expected to stimulate various sectors, leading to job creation and broader economic development across the nation. The positive investment climate is pivotal in Morocco’s strategy to foster economic resilience and diversification.

Managing inflation and fiscal stability

The report also highlights a favorable trend in inflation rates, which are anticipated to decline slightly to 4.1% in 2024 and 3.8% in 2025. This decrease is largely attributed to the global trend of falling prices for essential food commodities, offering relief to consumers and improving purchasing power.

Efforts to manage the budget deficit are showing promise, with forecasts suggesting a gradual reduction to 4.4% of GDP in 2024 and 4.2% in 2025. Strategic subsidy adjustments, particularly in butane prices, alongside economic recovery initiatives, are expected to contribute significantly to fiscal stability and economic resilience.

Challenges in trade dynamics

Despite the positive outlook, challenges remain in trade and current account balances. The current account is expected to maintain a slight deficit of 0.4% of GDP in 2024, widening moderately to 0.9% in 2025 due to increased import activity. Addressing these trade dynamics will require strategic planning and policy adjustments to ensure sustainable economic growth and stability.

Collaborative efforts at AfDB annual meetings

The AfDB Annual Meetings in Nairobi provided a platform for Moroccan policymakers and stakeholders to exchange insights and strategies with their counterparts from across the continent. Through collaborative discussions and knowledge-sharing sessions, participants explored avenues for advancing economic transformation and overcoming development obstacles.

Looking ahead

While Morocco’s economic outlook is promising, it is clear that concerted efforts and prudent policies will be essential to navigate uncertainties and capitalize on opportunities for inclusive and sustainable growth. By leveraging investments, managing inflation, and addressing fiscal challenges, Morocco is poised to navigate the complexities of the global economy and chart a course towards continued prosperity and development.