Rabat - The World Bank is expecting Morocco’s economic growth to witness a slight increase of 3.5% in 2023 and 3.7% in 2024, compared to last year’s 1.2% growth rate.

In its latest annual Global Economic Prospects report the World Bank forecasts that Morocco’s agriculture sector will “gradually” recover from the severe drought that hit the country last year, and in turn contribute to economic growth in 2023 and 2024.

Published on Tuesday, the report highlighted the economic disruptions that Morocco faced last year, causing the country’s economy to “decelerate sharply” in the first half of 2022. The Word Bank particularly attributed the drop in growth rate to droughts and the global rise in energy prices.

However, the report noted, Morocco has “partially compensated” for the drought and energy-driven challenges thanks to a notable “recovery of services boosted by the tourism sector.”

Meanwhile, the World Bank expects the Moroccan government’s spending to “partially offset” weakness in private and household consumption caused by soaring inflation.

But the government’s high debt “further complicates the outlook,” potentially weighing down the national economy, the report emphasized.

While “droughts already constitute a major source of macroeconomic vulnerability” in Morocco, the report warned that the continuation of these trends could make matters worse and affect several water-dependent sectors.

In regard to economic growth in the Middle East and North Africa (MENA) region, the report projected a 3.5% slow in 2023, “as the boost from the earlier increase in oil production and the recovery in services following reopening from the pandemic fade.”

MENA region prospects significantly differ from one country to the other, with some facing severe macroeconomic instability and conflicts, whereas others are forecasted to exceed their potential.

The World Bank forecasts a “sharp, long-lasting slowdown” worldwide, with global growth dropping to 1.7% in 2023, compared to 3% six months ago. “The crisis facing development is intensifying,” the report concluded.

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