The World Bank expects the global economy to grow by 2.7% in 2025 and 2026, while that of developing countries should stand at 4% during the said period.
Economic outlook: The World Bank’s projections for Morocco were made subject to improved weather conditions increasing agricultural production in 2025.
The World Bank is revising its forecasts for Morocco slightly upwards. In its latest report, the Bretton Woods institution anticipates an acceleration of the Moroccan economy in 2025. Growth should thus accelerate in the current year before showing a moderation in 2026. “In Morocco, the Growth is expected to strengthen to reach 3.9% in 2025, before moderating to 3.4% in 2026, subject to an improvement in weather conditions increasing agricultural production in 2025”, we can note from the World Bank. And to recall that “water shortage is a major concern, particularly in Morocco and Tunisia, and continued drought conditions could lead to a further reduction in water supplies.”
-According to the World Bank, the MENA region is vulnerable to extreme weather events induced by climate change, such as extreme heat, droughts and floods. “The materialization of these negative events could cause large-scale damage to infrastructure and reduce growth and productivity in the agricultural sector,” we can remember. Overall, the World Bank expects the global economy to grow by 2.7% in 2025 and 2026, while that of developing countries should stand at 4% during the said period. However, these performances remain low compared to the level observed before the pandemic. In its report, the World Bank judges these rates to be “insufficient” to foster the progress needed to reduce poverty and achieve broader development goals. The report from the international financial institution also notes that developing economies, “which contribute 60% to global growth, are expected to end the first quarter of the 21st century with the highest long-term growth prospects. low since 2000. The Bretton Woods institution, which reported growth during the first decade of the current century “stronger than in the 1970s”, noted a decline in the following ten years of growth in developing economies, weighed down by the effects of the 2008 financial crisis.
“The next 25 years will be more difficult for developing economies than the last 25,” says Indermit Gill, chief economist and senior vice president for development economics at the World Bank.
Highlighting the growing importance of developing economies for the global economy, the World Bank specifies that they represent approximately 45% of global GDP, compared to 25% in 2000. The interdependence of these economies has also increased, according to the financial institution, which reports that more than 40% of its goods exports go to other developing economies, double the share recorded in 2000. The World Bank warns that developing economies could face serious headwinds over the next two years, particularly declining investor confidence, rising trade tensions and persistent inflation. However, with the implementation of the right policies, these economies can “transform certain challenges into significant opportunities”, through an adequate response to infrastructure needs, the acceleration of the climate transition and the improvement of human capital, perhaps we conclude from the World Bank.
