Morocco : Economic growth forecast at 4.8% in 2021

The national economy is expected to grow by 4.8% in 2021, said on Monday in Rabat Minister of Economy, Finance and Administration Reform Mohamed Benchaâboun.

«Given the scenario of the International Monetary Fund (IMF) concerning the recovery of the world economy (+5.2%), notably in the euro zone (5.3%), national economic growth should stand at 4.8%», said Benchaâboun who was giving, before the Finance and Economic Development Committee at the House of Representatives, a presentation on the 2020 appropriation bill, the 2021 draft appropriation bill and the three-year budget programming.

However, this growth could not completely offset the economic contraction of 2020, which is forecast at -5.8%, due to the postponement of the recovery of some sectors such as tourism and related activities, as well as the deterioration of the labor market and corporate investment, he added.

Benchaâboun said that agricultural value added should increase by 11%, under the hypothesis of a cereal harvest of 70 million quintals and taking into account the forecasts of the Ministry of Agriculture which reports an increase in the production of citrus fruits (29%) and that of olives (14%).

He also stressed the need to establish a policy based on supporting economic recovery through public investment, strengthening employment, supporting financing, as well as on the development of sector-related strategies for the most affected sectors through «the pact for economic recovery and employment».

Regarding the three-year budget programming, Benchaâboun said that economic growth should stand at 4.2% in 2022, and reach 4.6% in 2023.