Morocco to extend its economic growth momentum until the end of the year, says S&P Global
Morocco will continue to grow economically 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 corroborate this.
The US agency, S&P Global, was the latest to confirm this. According to its latest dossier, the agency noted that the North African country's strong performance is due to important sectors such as tourism, phosphates, the automotive industry and aerospace.
Morocco is implementing positive economic reforms that could foster more inclusive and resilient growth in the African country. Investment-friendly actions include prioritising the boosting of the water and energy sectors.
Morocco's Ministry of Tourism welcomed the strong performance of the country's hotel industry after a positive assessment, with record tourist numbers, investment and employment data. In August, the Ministry of Tourism announced that Morocco's tourism revenues exceeded 7.83 billion dollars, 16% more than the previous year. In response to these figures, the ministry issued a statement in which it expects the trend to continue.
The Moroccan fertiliser giant, OCP Group, has also performed well, achieving revenues of 4.35 billion dollars in June. Likewise Morocco's aviation sector, which is growing rapidly, making the country a major global aviation hub. In particular, it was the sector with the highest percentage growth of 20%, reaching exports of 4.5 billion dollars and a portfolio of 40,000 employees.
Tangier Med also recorded a net profit of 82 million dollars in the first half of 2024. The Tangier Med Port Authority (TMPA) indicated a 4% increase in net revenue compared to the previous year and a 13.9% increase in the volume of goods and a turnover of 203 million dollars, an increase of 12% compared to the 180 million invoiced 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 Tangier Automotive City from 517 to 1,185 hectares to adapt to the increased demand for space by international companies.
According to the report, the country's economic growth is expected to be broad-based across all sectors and reach an average of 3.6% between 2024 and 2027, which is a significant improvement compared to the 1.5% recorded in 2020 and 2023.
The report noted that higher private investment and lower 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 scarcity through an ambitious action plan that includes the construction of new dams, desalination plants and water recycling, as well as measures to improve efficiency in water consumption by focusing on savings in irrigation systems.
In parallel, Morocco has begun construction of Africa's largest desalination plant in Casablanca, with a capacity to produce 300 million cubic metres of drinking water per year, according to the US agency.
Other institutions, such as the International Monetary Fund, noted that the country has achieved the status of ‘favoured country’ by the Resilience and Sustainability Fund, which seeks to support the country in its attempts to overcome its weaknesses and boost its resilience to climate change.
On the debt side, although it has increased, the debt structure remains sound and exposure to risks such as interest rate, refinancing and exchange rate is limited. Moreover, international bonds make up about one 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 country's economy.
Other recent reports also showed the same data. Morocco's economy remains stable and resilient according to the Moody's Investors Service report, despite the challenges of last year's earthquake.
