Morocco’s economic growth will continue until the end of the year. The latest reports from S&P Global, the International Monetary Fund, the World Bank and Moody’s Investors Services confirm this.
The American agency S&P Global was the last to confirm this. In its latest file, the agency notes that the good performance of the North African country is due to important sectors such as tourism, phosphates, the automotive industry and aerospace.
Morocco is implementing positive economic reforms that could promote more inclusive and resilient growth in the African country. Investment-friendly actions include prioritizing strengthening the water and energy sectors.
Morocco’s Ministry of Tourism has praised the strong performance of the country’s hospitality industry after a positive assessment, with record numbers of tourists, investments and employment data. In August, the Ministry of Tourism announced that Morocco’s tourism revenue had exceeded $7.83 billion, an increase of 16% from the previous year. Given these figures, the ministry issued a statement expecting the trend to continue.
Moroccan fertilizer giant OCP Group also performed well, with revenues of $4.35 billion in June. The same goes for the aviation sector, which is growing rapidly, making the country an important global aviation hub. In particular, it is the sector that recorded the highest percentage of growth, 20%, reaching exports of 4.5 billion dollars and a portfolio of 40,000 employees.
Tanger Med also recorded a net profit of $82 million in the first half of 2024. The Tanger Med Port Authority (APTM) reported a 4% increase in net revenue compared to the previous year and a 13.9% increase in cargo volume and a turnover of 203 million dollars, an increase of 12% compared to the 180 million billed in the same period of 2023.
In the automotive sector, the Moroccan government will double the area allocated to the automotive industry in the free zone of Tanger Automotive Citywhich will increase from 517 to 1,185 hectares, in order to adapt to the increased demand for space from international companies.
According to the report, the country’s economic growth should be generalized across all sectors and reach an average of 3.6% between 2024 and 2027which represents a significant improvement compared to the 1.5% recorded in 2020 and 2023.
The report notes that rising private investment and falling inflation are boosting domestic demand, which will contribute to potential growth. Inflation is expected to fall to 1.5% in 2024.
S&P Global Ratings praised Morocco’s efforts to address water shortage through an ambitious action plan that includes the construction of new dams, desalination and water recycling plants, as well as measures to improve the efficiency of water consumption by focusing on savings in irrigation systems.
At the same time, Morocco began the construction of the largest desalination plant in Africa in Casablanca, with a production capacity of 300 million cubic meters of drinking water per yearaccording to the American agency.
Other institutions, such as the International Monetary Fund, have noted that the country has been granted “favored country” status by the Resilience and Sustainability Fund, which seeks to support the country in its attempts to overcome its weaknesses and strengthen its resilience to climate change.
Regarding debt, although it has increased, the debt structure remains healthy and exposure to risks such as interest rates, refinancing and exchange rate is limited. In addition, international bonds represent around a third of this foreign currency debt, with a flexible repayment profile.
In addition to investments and reforms, the report highlights the importance of major projects related to hosting sporting events such as the 2025 Africa Cup of Nations and the 2030 World Cup, which will help boost the economy of the country.
Other recent reports have also presented the same data. According to the Moody’s Investors Service report, the Moroccan economy remains stable and resilient, despite the challenges posed by last year’s earthquake.
