The economic dynamism recorded in recent years has had a clear impact on Morocco’s foreign exchange reserves . They have improved significantly over the 2017-2021 period, providing foreign exchange guarantees that amounted to 320.3 billion dirhams (MMDH) in 2020.
Morocco has been able to take advantage of the Covid-19 crisis to turn it into an opportunity and launch an ambitious program of transformative reforms capable of boosting GDP growth to 4.6% in 2021. This is what a World Bank report on the evolution of the economic situation indicates.
In line with the expected rebound in economic growth in 2021 and 2022, remittances from Moroccans living abroad (MRE) to Morocco are expected to increase by 7.6%, reaching 73 billion dirhams in 2021 and an increase of 2.8% to reach 75.4 billion in 2022.
So far, Morocco has shown strong resilience to the current crisis, as evidenced by the latest economic growth forecasts published by the World Bank.
A new development model (NDM) based on a strong economy, better human capital, not to mention social inclusion, territories and sustainability to transform Morocco by 2035 has been proposed by the Special Commission on the Development Model (CSMD). This has been approved by the World Bank, which says it is a participatory forward-looking scheme.
Will Morocco and its Iberian neighbor go as far as breaking off diplomatic relations? The question is being seriously asked after Spain’s reception of Brahim Ghali and the arrival of several hundred Moroccans in Ceuta. Economist Nabil Adel and Mohamed Badine El Yattioui, Lecturer-Researcher in International Relations at the American University of Dubai (AUD) attempt to answer the question.
For this year 2021, Morocco’s real gross domestic product (GDP) should grow by 4.8%. This growth will be mainly linked to the easing of the impact of the health crisis and good rainfall.
The delay accumulated by some European countries in their vaccination campaigns is likely to be detrimental to the economic recovery, and particularly to the tourism sector in Morocco.
Morocco’s rating on long-term sovereign foreign currency issues is BB+, certified by the rating agency Fitch Ratings. This rating also shows stable prospects.
Not long ago, Morocco could be pleased to be the only country in the region to have preserved its "investment grade". But with the health crisis, the kingdom has been stripped of this title due to its external debt.
The Covid-19 health crisis has had severe repercussions on the Moroccan economy, leading to an unprecedented recession. In 2020, GDP contracted by 7.1%.
The Ministry of Economy, Finance and Administrative Reform indicated that at the end of December 2020, the Amended Finance Act (LFR) revealed a budget deficit of 82.4 billion dirhams (MMDH) or 7.6% of GDP. This despite a number of uncertainties and in compliance with the State’s commitments under the strategy to support social and economic sectors and post-Covid recovery.