Morocco
The Moroccan economy is fairly well diversified. However, it remains vulnerable in two main areas: firstly, its external position is highly reliant on the euro zone; and secondly, private consumption is highly dependent on the agricultural sector.
Morocco’s macroeconomic environment has deteriorated over the past quarter due to heightened external headwinds weighing on the current account balance as well as economic growth. The kingdom’s vulnerability to exogenous factors remains large given its dependence on the eurozone for tourism and export demand as well as on the global economy for capital, consumer and energy goods imports. Moreover, the forecast for real GDP growth was revised lower this year due to weaker than expected output in the agricultural sector in 2019 Q1. Non-agricultural sector growth remains resilient, but multiple external pressures present downside risks to the outlook. Nonetheless, strong manufacturing sector growth continues to be driven by the development of the high value-added automotive and aeronautical sectors, which supports Morocco’s medium-term economic growth trajectory. Politically, there is a current of serious dissatisfaction, and this will resurface on the emergence of social or economic stressors. There are risks of big marches that could disrupt economic activity, but Morocco is largely seen as a stable political unit. The overall political risk rating was maintained at its current level of low to moderate with the trend neutral. (Source: Morocco Quarterly Update, published June 2018.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-3.7 |
|
Consumer Price Index (% change y-o-y, avg) |
1.9 |
|
Current Account Balance (as a % of GDP) |
-5.5 |
|
Real GDP (annual % change) |
3.0 |
|
GDP per Capita, US$ |
3,260.7 |
|
Import Cover (months) |
5.3 |
|
Population, million |
36.2 |
| Total External Debt (as a % of GDP) |
43.7 |