Rabat - A new “Global Economic Prospects” report by the World Bank has concluded that Morocco’s GDP growth is expected to slow down significantly in the coming months.

Morocco’s economic growth is expected to be a modest 1.1%, after growth of 7.4% in 2021, while the country’s growth during the first quarter is estimated to be 1.2%, according to the report.

With agriculture accounting for a tenth of Morocco’s GDP and a third of its employment, the report cites an unprecedented drought the Kingdom experienced this year, affecting its agricultural output, as a main reason for the slowing down of growth.

Rising inflation and prices of essential goods have also eroded real income levels in Morocco, the report says.

This all comes as Morocco’s and neighboring countries’ economies attempt to recover from the effects of the COVID-19 pandemic.

Nearby countries such as Tunisia also continue to face economic challenges, with high unemployment levels and modest recoveries, according to the report.

The report notably cites the war in Ukraine as a major reason for the decrease, arguing that in addition to affecting most of the world with soaring energy and fuel prices, the war has significantly exacerbated food security issues in Africa and the Middle East.

The global setbacks from the Ukraine war and the fallout of the COVID crisis outweigh the Moroccan service sector’s expected recovery, the World Bank says.

Oil importing countries, of which Morocco is one, will have to subsidize energy costs for their citizens, the report adds, citing this as another reason for the deteriorating fiscal figures in Morocco and other countries facing similar constraints.

On the other hand, the report says that while the risk of COVID-19’s re-emergence with new strains remains possible, Morocco should be relatively safe due to having one of the highest vaccination rates in the MENA region.

Morocco, Tunisia, and the GCC countries are among the few countries in the region with high enough vaccination rates.

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