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Challenges Persist for Morocco's Economic Growth Amidst High Inflation and Unemployment
Morocco's economic outlook remains moderate, but the nation grapples with persistent challenges of inflation and unemployment, hindering its socioeconomic progress, as noted by analysts.
According to the Africa Development Bank, GDP growth is expected to increase from an estimated 3% this year to an average of 3.5% in 2024, before reaching 3.9% in 2025. However, this growth projection falls short when compared to North Africa's anticipated 3.9% expansion in 2024 and fails to address Morocco's pressing issues of inflation and unemployment.
Despite GDP gains, inflation continued to surge at a staggering 6.3% pace in 2023, well above the recommended 2% target. This rapid increase in prices raised concerns about stagflation, where sluggish economic growth coincides with rising consumer costs. Additionally, the drought severely impacted the agricultural sector, resulting in the loss of over 157,000 jobs in the past year, contributing to a daunting jobless rate of 13%, while urban sectors managed to create just 5,000 roles.
The bank's report attributes the regional growth slowdown to climate-related challenges such as droughts in Morocco and Tunisia, as well as floods in Libya. Egypt's struggles in addressing macroeconomic issues post-Covid-19 further impede North African recovery. Furthermore, the lack of inclusive growth and persistent youth underemployment since the Arab Spring uprisings remain entrenched issues.
While Morocco's GDP growth is a positive sign, it falls short of addressing the pressing concerns of inflation and job scarcity that have plagued the nation for over a decade since the regional political turmoil. Stakeholders are urged to devise innovative strategies aimed at fostering stronger and more inclusive development, thereby improving living standards and opportunities for citizens. Only through such measures can Morocco and North Africa achieve long-term stability.