Morocco’s Economic Recovery Remains ‘Solid’ (OECD SG)

Rabat - Morocco continues to record a 'solid' economic recovery, despite the many challenges facing the Kingdom, Secretary General of the Organisation for Economic Co-operation and Development (OECD), Mathias Cormann, said on Wednesday in Rabat.Presenting the findings of the OECD's 1st Economic Survey of Morocco at the closing ceremony of the Morocco-OECD Country Program II, held in the presence of Head of Government, Aziz Akhannouch, Cormann noted that growth in the national economy had rebounded after the crisis linked to the coronavirus pandemic, despite the Al Haouz earthquake and episodes of drought.Morocco, he added, benefits from a stable macroeconomic framework, noting that the budget deficit is narrowing, with a public debt ratio approaching 70% of GDP (gross domestic product), and that inflation is falling thanks to the moderation in food prices.He also indicated that the Moroccan economy should continue on its steady recovery trajectory, with real GDP growth forecast at 3.5% in 2024 and 4% i n 2025.Among the challenges facing the Kingdom, the OECD Secretary General cited the need to increase productivity growth. According to him, Morocco has scope for improving productivity, and the new investment charter plays an important role in stimulating private investment in industry.In this context, Cormann pointed out that the Organisation recommends further encouraging competition and increasing the role of the private sector, which could contribute to increasing the production of sophisticated goods.He also called for new measures to reduce the informal economy, with the aim of increasing productivity and creating better jobs.In addition, Cormann stressed that the ongoing education reform should improve skills and school results, while an increase in the rate of young people completing secondary school would help to strengthen skills and broaden prospects on the job market.On another note, he underlined that climate transition and water scarcity are another challenge identified by this study, to which Morocco is responding through its ambitious commitment to reducing carbon emissions and promoting renewable energies.For her part, Minister of the Economy and Finance, Nadia Fettah, reviewed the results of the study, which she said recognized the stability of Morocco's macroeconomic framework and the recovery of economic activity.This study highlights the major reforms undertaken to promote investment and strengthen social protection, while underlining the need for stronger economic convergence to achieve the objectives of the New Development Model and the building of the foundations of the Social State, as desired by His Majesty King Mohammed VI, Fettah noted.The Kingdom has demonstrated its resilience in the face of the current polycrisis, absorbing shocks while maintaining macroeconomic equilibrium.With regard to the business climate, the minister pointed out that the results of the study highlight the relevance of the Investment Charter, the reforms linked to the business climate, and sug gest evaluating the incentives offered a posteriori, for better targeting of public action.Conducted by Morocco's economic desk at the OECD since February 20, 2023, this study analyzes Morocco's economic performance in the face of global and domestic challenges, while providing growth prospects and strategic recommendations.Source: Agence Marocaine De Presse