Morocco will lose one point of growth in 2024 says the WB, it’s huge…

By:Souleymane Loum

On Wednesday, June 12, we presented to you the bad news reported by the Moroccan Economic Center (CMC), largely due to chronic drought; the latest forecasts from the World Bank (WB) confirm the clear downshift in economic growth in Morocco this year. The kingdom will only see salvation through an extremely robust economic strategy to stimulate long-term economic recovery, comments the bank. Almost the same statements as those made by the CMC.

The WB took a closer look at the macroeconomic indicators for 2024, with the national and global situation as a backdrop; according to these projections, the growth rate should be at best 2.4% in Morocco this year, significantly far from initial forecasts. The AfDB (African Development Bank) expected growth of 3.5% and the High Commission for Planning (HCP) 3.6% for 2024…

Last April the HCP expected the bad news, but not with this seriousness. The reason for this slump is the same as that put forward by all the others: the decline in agricultural production, impacted by persistent bad weather conditions. But Morocco is not the only one in the trap, the growth prospects of other countries in the MENA region (Middle East, North Africa) have also been reduced…

But “despite these challenges, encouraging signals of recovery are expected from the fourth quarter of 2024, in particular thanks to a gradual growth in oil production. In oil-importing countries, moderate growth is expected, while members of the Gulf Cooperation Council (GCC) are predicted to see a consolidation of their economic growth,” it reads.

According to the WB, the MENA region will still be weighed down by a combination of factors, especially geopolitical tensions, the impacts of global warming and the economic repercussions of armed conflicts in the area and elsewhere in the world. The report also points to the perils facing the global economy, including oscillations in global financial conditions and the impact of Chinese growth. To be monitored very closely…

“Confronted with these challenges, robust economic policies and structural reforms are necessary to strengthen economic resilience and seize long-term growth opportunities,” recommends the bank. She urges governments in the region to persist with measures to boost investment, diversify economies and consolidate institutional capacities.