Real GDP growth in Morocco should stand at 4.5% in 2021, said the African Development Bank (AfDB).
“Real GDP growth is projected to rebound to 4.5% in 2021 as the economy recovers from a severe contraction and agriculture thrives,” said the AfDB in its “African Economic Outlook” annual report.
During the third quarter of 2020, exports of automotive parts and phosphate and derivatives rebounded and are expected to strengthen more in the near term as global demand improves, the institution noted, adding that “this is likely to offset any continued weakness in the tourism, hotels, and restaurants sector.”
Consequently, the current account and fiscal deficit are expected to narrow, while inflationary pressure should remain subdued, according to the report.
“Rethinking the development model to enhance inclusive growth is the mission of a special commission” named by HM King Mohammed VI.
The report recalls that in 2020, Morocco has rapidly accessed emergency funding from donors, including $3 billion from the International Monetary Fund and $460 million from the African Development Bank to mitigate impact of the pandemic.
In September 2020, Morocco also issued a 1 billion Euro bond. These inflows bolstered foreign exchange reserves, which are sufficient to cover around 8.1 months of imports and three times the debt due in the short term, it added.
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