The African Development Bank (AfDB) said that it forecasts Morocco’s gross domestic products (GDP) to grow by 4.5 percent in 2021.
In its annual report on Economic Outlook in Africa, the pan-African bank said Morocco’s growth will be the result of economic recovery.
The bank also emphasized the importance of the country’s agricultural sector.
Morocco’s exports of automotive parts and phosphates and other derivatives have recorded an encouraging recovery level.
Citing a stagnant demand for hotels and restaurants, AfDB said it expects Morocco’s tourism sector to continue to face a COVID-19-induced crisis.
According to AfDB, Morocco’s account deficit and budget deficit are set to decline, while inflation levels are projected to remain low.
AfDB’s report also emphasized Morocco’s proactive measures and partnerships that allowed the country to secure major loans, including $3 billion from the International Monetary Fund, and $460 million from the AfDB to reduce the repercussions of the pandemic.
It also highlighted Morocco’s decision to issue a billion-euro bond in Sep. 2020.
The foreign exchange reserves represent 8.1 months of imports and three times the outstanding debt in the short term.
