Morocco’s economy keeps rising in tough times
Even in times where tourism has being affected, Morocco’s national economic growth increased by 4.5% in 2015. Morocco has achieved economic growth of 4.5% in 2015. An increase of 0.2 points compared to the forecasts used by the High Planning Commission (HCP). This is explained by the good performance of the agricultural activity and the increase in external demand.
For the High Commissioner for Planning (HCP), this growth is largely due to improved agricultural value added which has increased in volume by 12.8% in 2015, against 2.2% in 2014. While the added value of non-agricultural activities registered an increase of 1.9% in 2015, against 2.5% in 2014.
Foreign trade of goods and services have made a positive contribution to this growth. Indeed, exports of goods and services were up 7.8% in 2015, against 1.7% in 2014 and imports increased by 4.8% in 2015, against a decline of 0.9% in 2014.
Morocco has been able to build the foundations of its economic development through its involvement in a process of emergence of high value-added sectors (agriculture, industry) and enhancement of the potential of its marine and mineral resources.
In 2016, economic growth is projected to decelerate to 1.7 %, under the assumption of a below average cereal output and a limited rise of nonagricultural GDP. The economy has been hit hard by a drought in the fall of 2015, which compromised the 2016 cereal production. The authorities’ emergency plan to safeguard livestock, protect plant resources and support rural income should however help contain the contraction of the agriculture GDP below 10 % in 2016. Non-agricultural GDP growth is expected to remain in the neighborhood of 2.5 % in the absence of more decisive structural reforms. According to the 2016 Budget law, the fiscal deficit is expected to decline further to 3.6 % of GDP in line with the government’s commitment to bring down the deficit to 3 % by 2017. With low oil prices, the current account deficit is projected to decrease further to 1.4 % of GDP in 2016.