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Economy

Morocco's Economic Resilience: S&P Forecasts Sustained Growth Amid Reforms

Thursday 03 - 09:20

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Morocco's economy is poised for sustained growth, according to a recent report by S&P Global Rating. The international credit rating agency has highlighted ongoing economic reforms in the North African kingdom, predicting that these measures will foster more inclusive and resilient economic expansion in the coming years.

The S&P report identifies key sectors driving Morocco's economic performance, including tourism, phosphates, automotive manufacturing, and aerospace. These industries have emerged as significant contributors to the country's economic growth in recent years, a trend supported by official data from the Moroccan government.

Tourism, in particular, has shown remarkable recovery and growth. The Moroccan Ministry of Tourism recently announced that the sector's overall revenues reached an impressive $7.83 billion in August, signaling a robust rebound and promising outlook for the hospitality industry.

In the industrial sector, Morocco's state-owned phosphate and fertilizer producer, OCP Group, reported strong financial results with revenues of $4.35 billion as of June. Meanwhile, the country's burgeoning aeronautics sector has established Morocco as a global aviation hub, achieving a growth rate exceeding 20% and exports reaching $4.5 billion.

Looking ahead, S&P projects Morocco's GDP growth to average 3.6% between 2024 and 2027, marking a substantial improvement from the 1.5% growth rate observed between 2020 and 2023. This positive outlook is attributed to rising domestic demand, lower inflation, and increased private investment.

The report also anticipates a significant drop in inflation, forecasting rates to decrease to approximately 1.5% in 2024. This reduction in inflationary pressures is expected to further stimulate economic activity and consumer spending.

Beyond economic reforms and sectoral growth, S&P identifies large-scale projects related to major sporting events as potential catalysts for economic expansion. The upcoming 2025 Africa Cup of Nations (AFCON) and the 2030 FIFA World Cup, which Morocco will co-host, are expected to drive infrastructure development and boost various sectors of the economy.

This optimistic forecast aligns with other recent assessments of Morocco's economic resilience. Moody's Investors Service, for instance, recently reported that the Moroccan economy remains stable and resilient, even in the face of challenges such as last year's devastating earthquake.

As Morocco continues to implement reforms and diversify its economy, the country appears well-positioned to navigate global economic uncertainties and emerge as a model of sustainable growth in the region.