Morocco: Central Bank Expects Growth to Reach 5.3 pc in 2021 & 3.2 pc in 2022

Morocco economic growth is expected to reach 5.3 pc in 2021 before stabilizing at 3.2 pc in 2020, according to the country’s central bank forecasts.

“The value added of non-agricultural activities would increase by 3.5 % in 2021 and, assuming a projected cereal production of around 95 million quintals, the value added of the agricultural sector would rebound by 17.6 %, thus bringing the growth of the national economy to 5.3 %”, said Bank Al Maghrib following its meeting held Wednesday.

In 2022, the growth rate would consolidate to 3.2 pc, reflecting an acceleration in its non-agricultural component to 3.8 pc and a 2 pc drop in agricultural value added, assuming a return to an average cereal production of 75 million quintals, underlined the experts of the Bank.

The country’s economic activity is projected to continue recovering thanks to the $ 13.3 billion stimulus plan, the accommodative monetary policy stance, the progress made in the vaccination campaign and the favorable weather conditions prevailing during this crop year, added the Bank’s analysts.

Imports are expected to grow at a sustained pace, mainly due to the expected increases in the energy bill and in the purchase of consumer goods, while exports recovery would particularly be fostered by the announced increase of production capacity in the automobile industry.

At the same time, assuming a gradual rise of foreign tourist inflows as of the second half of this year, travel receipts would grow moderately, while remaining well below pre-crisis levels, to $ 4.8 billion this year and $ 7.5 billion in 2022, according to the Bank’s economic outlook.

As for remittances from Moroccan expatriates, they are expected to reach $ 7.8 billion this year and $ 8.1 billion in 2022, while inflation is projected to rise moderately, from 0.7 pc in 2020 to 0.9 pc in 2021 and 1.2 pc in 2022.

About Khalid Al Mouahidi 3188 Articles
Khalid Al Mouahidi : A binational from the US and Morocco, Khalid El Mouahidi has worked for several american companies in the Maghreb Region and is currently based in Casablanca, where he is doing consulting jobs for major international companies . Khalid writes analytical pieces about economic ties between the Maghreb and the Mena Region, where he has an extensive network