Nadia Alawi, Morocco’s economy and finance minister, announced that her country’s economy, “despite very turbulent international conditions”, is expected to achieve a recovery rate of over 4.5 percent in 2023.
Al-Alawi told the House Finance and Economic Development Committee that her country’s national economy is “expected to record national economic growth of around 4.5 percent in 2023 instead of the expected 1.5 percent during 2022, despite to a very turbulent international situation.”
The Moroccan Minister of Economy and Finance explained that this forecast is based “on assumptions based on an average grain yield of 75 million centners, butane gas price in the range of $700 per ton, oil price stability at $93.” per ton and the stability of the dollar against the dirham at the level of 9.8″.
Al Alawi also expected the inflation rate to hit 2 percent instead of the 5.3 percent currently recorded, also pointing out that “economic growth expectations could be lowered if the prospects for a global economic recovery in 2023 continue to deteriorate and growth expectations decline.” . , especially in the European Union, due to the effects of the conflict. Russian-Ukrainian impact on commodity prices and global production and supply chains in parallel with the tightening of monetary policy to control inflationary pressures.
With regard to inflation, the Minister of Economy and Finance confirmed that its level in Morocco reached an unprecedented level in 2022, noting that “the increase in the inflation rate that Morocco has experienced this year has not been recorded for 28 years, reaching 5.1 percent in year”. average for the first half of the year.” 3.4 percent compared to 1.5 percent last year.
Al-Alawi said that the inflation rate is expected to exceed 5.3 percent in 2022, compared to 1.4 percent that was recorded in 2021.
Regarding unemployment, she pointed out that Morocco lost “58,000 jobs between the first half of 2021 and the first half of 2022, while agriculture, forestry and fisheries lost 180,000 jobs.”
On the other hand, the minister stated that “85,000 jobs have been created at the level of the service sector, 29,000 jobs have been created at the level of the construction and public works sector, and 13,000 at the level of industry. .”
Exports, Al-Alawi said, also showed a 41 percent positive trend compared to a 39 percent acceleration in imports, resulting in a 37 percent widening trade deficit.
In addition, he mentioned that remittances from Moroccans living abroad recorded “an increase of 5%, while tourism revenues rose markedly by 173% and exceeded the level recorded in 2019 in the month of May.”
The Minister of Economy of Morocco noted that “net foreign investment in our country increased by 10.8 percent, and the foreign exchange reserve in Bank Al-Maghrib allows to cover about 6 months of imports.”