The European Bank for Reconstruction and Development (EBRD) expects Morocco’s economic growth to reach 3 per cent in 2024, before rising to 3.6 per cent in 2025, supported by a recovery in external demand and government investment. Despite additional expenditure related to the post-earthquake reconstruction and expanding targeted social protection spending, inflation eased to 0.3 per cent by February 2024. However, Morocco’s high dependence on energy imports and seasonal agricultural production makes the economy vulnerable to climate risks, underlines the report. In its projection for the whole southern and eastern Mediterranean region, EBRD expects growth to accelerate from 2.7 % in 2023 to 3.4 % in 2024 and 3.9 % in 2025. This represents a downward revision compared with the previous forecast due to the negative impacts of the war in Gaza on the region’s tourism and investments.

Source: The North Africa Journal May 16, 2024 11:07 UTC