An Oxford Business Group report on Morocco’s economy in 2015 and beyond credits reform and strategic investment for a positive outlook:
A strong agriculture harvest put Morocco on course to post healthy growth in 2015, while structural reforms, together with strategic diversification plans targeting key sectors and regions, are also beginning to yield results.
Ratings agency Fitch described 2015 as a year marked by exceptionally strong agricultural output, with Morocco set to post GDP growth of 4.6%, up from 2.7% in 2014 when a poor harvest and low external demand took their toll on the economy.
In the year ahead the government will be looking to strengthen the GDP contributions of key sectors, including agriculture and industry, through a combination of targeted support programmes for local producers and financial incentives for investors.
Economic expansion is expected to ease to 3% in 2016, according to the IMF, with non-agricultural activities set to make a slow recovery on the back of a gradual revival in EU markets, which account for nearly 60% of Morocco’s foreign exchange earnings.
Economic reforms, including the removal of key subsidies, are expected to spur growth, in line with the national drive to reduce the budget deficit…[FULL STORY]