Morocco flag Morocco: Economic outline

Economic Outline

Economic Indicators

For the latest updates on the key economic responses from governments to address the economic impact of the COVID-19 pandemic, please consult the IMF's policy tracking platform Policy Responses to COVID-19.

In recent years, the Moroccan economy has been characterised by macroeconomic stability and low levels of inflation, relying mostly on exports, a boom in private investment, and tourism. However, the COVID-19 shock has pushed the Moroccan economy into its first recession since 1995. The country’s GDP rebounded in 2021 when it grew an estimated 7.9%, but was hindered by global shocks and a severe drought in 2022, with GDP growing by only 0.8% (IMF). The recovery of tourism, strong remittances, and resilient exports have partially offset the shocks derived from Russia’s invasion of Ukraine, which fueled inflation and reduced households’ purchasing power. The IMF expects Morocco’s growth rate to hover around 3% this year and the next, assuming a gradual improvement of external conditions and an average agricultural season.

The fiscal impact of the health and social protection reform and postponement of the liquefied petroleum gas and flour subsidy reform slowed the consolidation of the budget deficit, which was estimated at 5.1% of GDP in 2022. The government published its three-year budget plans as part of the 2023 Budget, which envisages a continued reduction of the deficit to closer to pre-pandemic levels (projected at 5.2% of GDP this year and 4.5% in 2024 – IMF). The debt-to-GDP ratio has been increasing in recent years, reaching 70.3% in 2022 (from 68.9% one year earlier), and is expected to remain stable over the forecast horizon. The average annual inflation rate reached 6.2% in 2022 as a result of the 11% increase in the food index and the 3.9% increase in the non-food index (data HCP). Higher energy prices contributed to inflationary pressures (the country’s energy bill has more than doubled in the first eleven months of the year), and the Central Bank raised its benchmark interest rate to 2.5% in December in an effort to curb inflation.

Albeit its high levels, the unemployment rate has been declining in recent years and averaged 11.1% in 2022. For 2023 and 2024, the IMF expects it to further decrease to 10.7% and 10.2%, respectively. According to the Moroccan Higher Planning Commission, unemployment particularly affects the youth (15-24 years of age – at 31.8% as of August 2022 – latest data available) and recent graduates. The rate of poverty remains one of the highest in the Mediterranean region, with almost one-fifth of the population living near the poverty line. Finally, the GDP per capita (PPP) was estimated at USD 9,808 in 2022 by the IMF.

 
Main Indicators 20202021202220232024
GDP (billions USD) 121.35142.87142.87150.59158.72
GDP (Constant Prices, Annual % Change) -7.27.90.83.13.0
GDP per Capita (USD) 3,3753,9343,8964,0684,247
General Government Balance (in % of GDP) -5.2-5.9-5.1-5.2-4.5
General Government Gross Debt (in % of GDP) 72.268.970.370.170.6
Inflation Rate (%) 0.61.46.24.12.2
Unemployment Rate (% of the Labour Force) 12.211.911.110.710.2
Current Account (billions USD) -1.42-3.24-6.19-6.23-6.00
Current Account (in % of GDP) -1.2-2.3-4.3-4.1-3.8

Source: IMF – World Economic Outlook Database, 2016

Note: (e) Estimated Data

 
Monetary Indicators 20162017201820192020
Moroccan Dirham (MAD) - Average Annual Exchange Rate For 1 GBP 13.2412.4712.5212.0012.18

Source: World Bank, 2015

 

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Latest Update: March 2023

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