Morocco maintains solid economic recovery, according to OECD study

Morocco continues to record a «solid» economic recovery, despite the multiple challenges it faces, said the Secretary-General of the Organization for Economic Co-operation and Development (OECD), Mathias Cormann, in Rabat on Wednesday.

Presenting the conclusions of the first OECD economic survey on the kingdom at the closing ceremony of the Morocco-OECD Country Programme II, in the presence of the Head of Government, Aziz Akhannouch, Mathias Cormann noted that the national economy's growth had rebounded after the coronavirus pandemic crisis, despite the Al Haouz earthquake and the drought.

Morocco, he continued, benefits from a stable macroeconomic framework. The budget deficit is reducing with a public debt ratio of around 70% of GDP (gross domestic product), and inflation is falling thanks to the moderation of food prices. Thus, the Moroccan economy should continue on its steady recovery path, with real GDP growth expected at 3.5% in 2024 and 4% in 2025.

Among the current challenges, the OECD Secretary-General cited the need to increase productivity growth. For him, Morocco has room to improve this productivity, and the new investment charter plays an important role in stimulating private investment in industry.

In this vein, Mathias Cormann said that the Organization recommends further encouraging competition and increasing the role of the private sector, which could help increase the production of sophisticated goods. He also called for the adoption of new measures to reduce the informal economy with the aim of increasing productivity and creating better jobs.

Furthermore, Mathias Cormann stressed that the ongoing education reform should improve skills and academic results, while an increase in the rate of young people completing secondary school would help strengthen skills and broaden prospects in the labor market.

On another note, he noted that the climate transition and water scarcity constitute another challenge identified by this study, to which Morocco is responding through its ambitious commitment to reduce carbon emissions and promote renewable energy.

Conducted by the Morocco Economic Desk at the OECD since February 20, 2023, this study analyzes Morocco's economic performance in the face of global and internal challenges, while providing growth prospects and strategic recommendations.