Morocco Faces Socioeconomic Headwinds As Deficit Overshoots, Growth Slows

Morocco’s economy is more robust than that of many of its neighbors. Growth averaged 4% between 2009 and 2015. But it fell last year as the deficit doubled. Recent protests highlight social tensions fueled by high youth unemployment.

Morocco’s GDP growth slowed to just 1.1% for 2016, way down on 2015’s 4.5% and the lowest level in 10 years.

The country’s current account deficit meanwhile ballooned to 4.4% of GDP, not only twice the 2015 level but also a major blowout on the 2.9% provisional 2016 figure included in the IMF’s latest Article IV assessment of the country, released this February.

This year should see an improvement on both fronts given that the agricultural sector has rebounded strongly from an abysmal 2016 grain harvest (down 70% of 2015’s record). That said, the fact that agriculture remains an essential pillar of the Moroccan economy, shows that diversification still has far to go. (CONTINUED - 968 WORDS)

DATA INSIDE THIS ARTICLE

chart Morocco: Gdp And Current Account Both Undershoot In 2016