• Wed. Jun 7th, 2023

Morocco’s booming economy


May 26, 2023

Morocco continues to lay the foundations for strong financial modernisation and improvement, according to several indicators.  

Considering the fact that his accession to the throne in 1999, Morocco’s King Mohammed VI has been clear that the nation ought to take a step forward in terms of its improvement in several locations, and the financial and industrial spheres have not escaped this state organizing.  

Morocco’s present financial readiness is demonstrated by information from several institutions displaying the superior wellness of Moroccan finances. 2023 also augurs effectively for national economic efficiency. Along these lines, the European Bank for Reconstruction and Improvement (EBRD) presented a report in which it forecasts a development price of three.1% for the Moroccan economy this year, greater than that of neighbouring nations such as Algeria, which has a development forecast of two.1%, or Tunisia, with two%.

PHOTO/FILE – Morocco’s King Mohammed VI

The EBRD has also joined the predictions of the Globe Bank (WB), due to the fact each entities estimate that the Gross Domestic Solution (GDP), the macroeconomic magnitude that expresses the monetary worth of the production of goods and solutions of final demand, will have a development price of three.1% in the course of 2023, far exceeding the figure for 2022, which stood at two.1%.  

Going deeper into these forecasts, the WB also projects that by 2024 the Moroccan nation will develop by three.four%, if it continues to implement the structural reforms planned to enhance competitiveness.  

The International Monetary Fund (IMF) also forecasts that Morocco’s economy will develop by three , a incredibly good figure that would even be slightly greater in 2024, according to the international economic institution’s calculations. The EBRD itself also forecasts a development price of three.two% for the Moroccan economy in 2024. 

PHOTO/PIXABAY – Bandera de Marruecos
PHOTO/PIXABAY – Flag of Morocco

The equivalent information supplied by these prestigious financial entities coincide in the superior financial outlook for the North African nation, with development of about three%, which, despite the fact that not incredibly excessive, does invite exceptional optimism since it need to be borne in thoughts that the present worldwide situations are not the finest, with the Russian invasion of Ukraine, which has led to a rise in rates in the power marketplace and other raw components, and inflation itself, which is becoming felt in quite a few components of the globe. 

GDP development is incredibly critical for an economy, as it is a reflection of elevated financial activity. If financial activity picks up, unemployment tends to fall and, logically, per capita earnings rises. This can also lead to financial agents becoming additional inclined to invest rather than save. In addition, following an enhance in GDP, the state’s tax revenues have a tendency to rise, as the state collects additional taxes and can for that reason allocate these amounts to spending products. Morocco’s present GDP stood at $142.867 billion in 2021, ranking 59th in the globe by GDP volume, and the trend is upward. 


Financial and industrial improvement

The Moroccan government, below the leadership of King Mohammed VI, is clearly committed to national financial and industrial improvement. In spite of the financial slowdown, the Moroccan government is committed to implementing policies aimed at rising public and private investment in distinct sectors such as infrastructure, rural locations and education. All of this has been boosted by an critical commitment to national industrial improvement, which was highlighted by the celebration in Casablanca of the Moroccan Sector Day, an critical occasion that highlighted the critical industrial and financial evolution that the Moroccan kingdom is undergoing. At the occasion held in Casablanca in April, it was highlighted that Moroccan market continues to take off in several sectors such as the automotive, textile and agro-industrial sectors. As an instance of this, the achievement story of the aeronautical market can be highlighted, which now has 140 providers operating in the sector in Morocco, with good improvement, offered that 20 years ago there have been only four or five. These 140 providers in the sector straight and indirectly employ 20,000 persons, as Karim Cheikh, president of the Moroccan Aeronautical and Space Industries Group, explained to Atalayar. Cheikh also stressed that Morocco is the top nation in Africa in terms of technological improvement in the aeronautical sector.  . 


Morocco has created a firm commitment to innovation and investment in its market, following the industrial revitalisation strategy drawn up by the Moroccan state, which combines collaboration amongst the private and public sectors, and this is bearing fruit and obtaining a favourable influence on the economy.  

There are at present various strategic sectors in Morocco that show the national upward trend, such as the aerospace, automotive, agro-industrial, metallurgical and power sectors, with the current discoveries of gas and oil fields in Morocco becoming managed by providers such as Sound Power and Chariot, which could deliver a important enhance to the country’s power provide and the generation of wealth in the nation.  

As Mohammed Reda Lahmini, head of the Innovation Commission of the Common Confederation of Moroccan Enterprises (CGEM), told Atalayar, King Mohammed VI set an investment target of 550 billion dirhams amongst now and 2026 in the course of the opening of the Parliament’s sessions final October, with a view to producing some 500,000 jobs.

PHOTO/FILE – Mohamed Reda Lahmini
PHOTO/FILE – Mohammed Reda Lahmini

The search for investment remains a important challenge for the Moroccan authorities. The government led by Prime Minister Aziz Akhannouch is functioning in this path with fiscal measures to market investment in the national economy and market, in spite of the present challenging international context, marked by the war in Ukraine and complications such as inflation. For Mohammed Reda Lahmini himself, “the legal and fiscal framework is a single of the essential achievement variables to accompany the investor nowadays, the fiscal aspect is incredibly critical”. The Moroccan government’s present taxation framework law aims to make the Moroccan tax method desirable, and the CGEM itself actively contributes to the improvement of the taxation framework law with the government by way of the several finance law

AFP/FADEL SENNA - Los empleados de la fábrica trabajan en una línea de ensamblaje de automóviles en la planta de Renault-Nissan Tánger en Melloussa, al este de la ciudad portuaria de Tánger
AFP/FADEL SENNA – Factory personnel operate on a vehicle assembly line at the Renault-Nissan Tangier plant in Melloussa, east of the port city of Tangier

Investor self-assurance in Morocco has also been boosted by the country’s removal from the grey list of the Economic Action Job Force (FATF). The FATF unanimously decided to eliminate the North African nation from the list and this is a powerful endorsement that demonstrates Morocco’s superior efficiency in terms of economic governance and its critical fight against dollars laundering. The FATF’s choice hence strengthens the Kingdom’s image and position in negotiations with international economic institutions, as effectively as the self-assurance of foreign investors in the national economy. 

The government has planned measures aimed at enhancing the investment climate and attracting foreign investment, such as tax cuts for new investors, elevated funding for the improvement of renewable power, liberalisation measures in the agricultural sector, reduction of power subsidies, regulatory reduction for enterprises and financial diversification.  

PHOTO/ATALAYAR/GUILLERMO LÓPEZ – Jornada de la Industria de Marruecos

Job creation

Morocco’s Minister of Sector, Ryad Mezzour, pointed out that so far in the present government’s term of workplace, one hundred,000 jobs have currently been developed and the nation is on track to attain 400,000 jobs in the industrial sector, an objective that will be accomplished thanks to vocational instruction, analysis and innovation. Chakib Alj, president of the Moroccan employers’ association CGEM, explained that all the components that make up the private sector are mobilised to guarantee that market becomes the financial future of the nation. To this finish, he emphasised two principal elements: investment in R&ampD (Morocco invests .eight% of GDP compared to other nations in the created globe, which invest two.eight%) and artificial intelligence. 

Enhanced investor self-assurance is contributing to Morocco’s financial improvement, as are superior agricultural marketplace information and moderating inflation. Of note right here is the truth that Morocco’s agricultural exports to the European Union reached €1.25 billion in 2021. The agricultural and fisheries sector accounted for 12% of Moroccan GDP in 2021. This sector has benefited from the 2008 “Green Morocco Program”, which boosted the improvement of farms and the integration of compact farmers into national and international provide chains. In ten years, investments in the agricultural sector reached 104 billion dirhams (just about ten billion euros). This strategy is becoming continued with the Green Generation Program for the period 2020-2030, which plans to enhance agricultural production, enhance Moroccan farmers’ incomes and even lessen water consumption in the agricultural market.  


For its portion, Morocco’s Investment Commission authorized 21 projects with a price range of $7.six billion, with the intention that the planned projects will create about five,800 direct employment possibilities and produce about 15,000 further indirect jobs. The projects are largely concentrated in the industrial sector, worth $five.three billion, just about 70% of the total investments. Tourism and healthcare account for eight% of these investments, behind seawater desalination projects, which account for 14% of this price range. 

PHOTO/FILE – Aziz Akhannouch
PHOTO/FILE – Aziz Akhannouch

Enterprise creation

A different figure that demonstrates Morocco’s financial vigour is the quantity of providers developed in the Kingdom. Through the 1st 3 months of 2023, the quantity of new providers in the North African nation exceeded 24,500, according to information from the Moroccan Industrial and Industrial House Workplace (OMPIC).  

In detail and once again according to OMPIC, this figure is divided amongst legal entities (16,357 providers) and men and women (eight,187 providers). Additionally, the sectoral classification of the providers developed is dominated by the commerce sector (37.03%), followed by building and public functions and true estate activities (18.49%), miscellaneous solutions (17.47%), transport (eight.18%), market (six.95%), hotels and restaurants (six.26%), the information and facts and communications technologies (ICT) sector (two.89%), agriculture and fishing (1.70%) and economic activities (1.02%). 

These new providers are confident to contribute to the generation of additional wealth and jobs and to the enhance in the production of goods and solutions in the North African nation. 

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