Morocco has achieved remarkable economic performance over the last decade and the medium-term economic outlook is favorable, notes the report of the African Development Bank (AfDB) on the “economic prospects in Africa 2019” presented Friday in Addis Ababa.
The report presented by the African Union Commission and the AfDB to the Union headquarters on the sidelines of the 32 Ordinary Summit of the AU, indicates an increase in Morocco of the stock of structuring infrastructures thanks to a rate of investment averaged 34 pc over the 2008-2018 decade, compared with 29.8 pc in 2007, improving the Kingdom’s attractiveness for foreign direct investment.
“The Moroccan economy remains resilient. Real GDP growth remains positive, but is decelerating to 3.1% in 2018 compared to 4.1% in 2017 in relation to less abundant rainfall in 2018 than in 2017. The estimated budget deficit 3.9% in 2018 compared to 3.7% in 2017 should gradually decrease, as a result of fiscal consolidation and tax reforms, the rationalization of public spending, and increased revenue mobilization,” says the report.
The current account deficit is estimated at 3.8 pc of GDP in 2018, marking a slight increase compared to 2017, mainly due to an increase in imports of oil and capital goods partly offset by tourism receipts and exports transfers, says the report.
The paper notes that the introduction in 2018 by Bank Al-Maghrib of the floating exchange rate regime controlled within a range of ± 2.5%, as against ± 0.3% previously, was seen as a positive sign by investors and an important step towards a great flexibility of the exchange rate regime.
“In the first 8 months of 2018, the dirham price rose 1.9% against the euro and depreciated by 0.9% against the US dollar. In this context, Morocco’s debt remains sustainable and should decline in the medium term,” the report adds.
On the other hand, the report stresses that the diversification of the economy in the automotive, aerospace and electronics sectors, a key objective of the Industrial Acceleration Plan, should lead to an expansion of the economy, agribusiness and services, and stimulate technology transfer and job creation.