ECONOMY
Morocco’s Economic Resurgence: Manufacturing and Tourism Propel 2.9% Growth in 2024
Morocco’s economy is projected to grow by 2.9% in 2024, driven by robust performance in its manufacturing and tourism sectors, as highlighted by the European Bank for Reconstruction and Development (EBRD). This forecast points to a steady recovery despite ongoing challenges, particularly in agriculture due to adverse weather conditions, including severe droughts. The country’s manufacturing sector, which includes industries such as automobile production, electrical equipment, and chemicals, has seen significant growth. Morocco’s strong export performance in these sectors plays a crucial role in driving its economic expansion.
Tourism, a vital pillar of Morocco’s economy, continues to recover from the impacts of the COVID-19 pandemic. With rising tourist arrivals and increasing foreign currency earnings, this sector remains a key contributor to economic growth. In 2023, Morocco’s tourism revenue reached MAD 59 billion by mid-year, further bolstering economic activity. Tourist hotspots like Marrakech and Agadir have experienced particularly high demand, which has helped stabilize domestic consumption and create jobs.
Inflation, which had been a concern in recent years, has eased significantly, falling to 1.3% in July 2024. This reduction in inflation is largely due to declining food and energy costs, which have provided relief to households and businesses. Moreover, the Moroccan government’s fiscal policies have contributed to reducing the budget deficit to 4.3% of GDP, down from previous years. This fiscal consolidation has been facilitated by strong remittances from Moroccans abroad, as well as a decrease in imports.
Looking ahead, the EBRD expects Morocco’s growth to accelerate further in 2025, reaching 3.6%. The outlook for 2024 remains optimistic, supported by the continued recovery of key sectors and the government’s focus on structural reforms aimed at improving the business climate and fostering investment. Despite these positive developments, challenges in agriculture due to drought and external economic headwinds remain factors to watch closely as Morocco strives for sustained economic growth.
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