Morocco Bucks Economic Misery Trend in North Africa

Thursday 14 March 2024 - 16:20

In the midst of widespread economic turmoil across the region, Morocco shines as a beacon of relative stability, as revealed by the highly anticipated Hanke's Annual Misery Index (HAMI) for 2023. This globally renowned index, meticulously curated by esteemed economist Steve H. Hanke, offers a comprehensive assessment of the economic well-being of citizens across 157 nations, considering factors such as annual inflation, unemployment rates, and lending rates.

In a landscape marred by economic distress, Morocco has notably climbed to the 56th position, a significant improvement from its previous ranking of 58th. This achievement stands out starkly against the dismal performances of its North African counterparts, with Sudan (6th), Egypt (18th), Algeria (36th), Tunisia (38th), and Libya (45th) all ranking considerably lower.

While Morocco's placement is far from ideal, its relatively favorable standing is primarily attributed to its unemployment figures. According to the index, Morocco's struggles with joblessness have been a key factor in its overall economic misery quotient.

However, even this silver lining is dimmed by a staggering 13% unemployment rate recorded at the end of 2023, a level unseen in over two decades. The Higher Commission of Planning (HCP) links this concerning trend to the drought-stricken agricultural sector, which previously employed a significant 28% of the nation's workforce.

The ramifications of this agricultural crisis have been profound, resulting in a significant loss of jobs nationwide, with a striking 202,000 positions eliminated, notably 207,000 of which were in rural areas. The enduring drought and its devastating impact on crops have undoubtedly contributed to this substantial decline in employment opportunities.

While Morocco's relatively favorable position on the misery index underscores its resilience amidst regional challenges, the nation still faces formidable economic hurdles. Navigating these turbulent waters requires the government's focused attention on addressing pressing issues such as unemployment and drought, pivotal in securing a more prosperous future for its citizens.