Morocco Economic Monitor – Summer 2024 Morocco's Economy Proves Resilient but Private Sector Faces Challenges

The Moroccan economy expanded by 3.4% in 2023 despite global economic headwinds, an inflation surge, and the Al-Haouz earthquake. Growth was propelled by a tourism rebound, strong manufacturing exports, and increased private consumption, supported by sound macroeconomic policies. Foreign direct investment (IDA) inflows grew, and the current account deficit shrank to its lowest since 2007. Challenges remain, with per capita consumption just reaching pre-pandemic levels and a new social aid program to assist vulnerable households. Growth is expected to slow to 2.9% in 2024, with a weak agricultural sector but stable non-agricultural GDP.

A special focus chapter of the report, developed in partnership with the Moroccan Observatory of Small and Medium Enterprises, examines the private sector's productivity and job creation. It underscores the value of micro-level data for policymaking and the necessity of a dynamic business environment that encourages innovation and resource reallocation to more productive firms.