Morocco's economy to grow 4.6% in 2021, HCP says

Morocco's economy is expected to grow by 4.6% in 2021, after a 7% recession over the past year, according to the projections of the High Planning Commission (HCP).

«Taking into account an expected rise of 4.7% in taxes and levies on products net of subsidies, the gross domestic product (GDP) should register a growth of nearly 4.6% in 2021», the HCP points out in its 2021 Provisional Economic Budget.

In value, the GDP should grow by 5.8%, the source says, noting that this evolution shows a slight increase in inflation of 1.1% against - 0.1% in 2020.

«The national economic outlook for the year 2021 is based on a relaunch in external demand towards Morocco because of the hopes that rose from the launch of vaccination campaigns, which should promote the opening of borders and lead to a resumption of household confidence and investors», the HCP notes.

These economic forecasts also take into account the provisions announced in the 2021 finance law and assume the achievement of an average cereal production of 75 million quintals during the 2020/2021 campaign, the source stresses.

Tourism activity is expected to continue to suffer from the effects of the health crisis, the HCP points out, noting that in order to speed up its recovery, the tourism sector should benefit from the recovery plan implemented under the 2020-2022 program contract. This ambitious plan aims to provide financial support, supervision and support for tourism businesses.