The American financial rating agency, S&P Global Ratings, indicated, in its latest evaluation report, that the economic reforms underway in Morocco should promote “more inclusive” and “stronger” growth.
The ongoing change in “Morocco’s underlying economic structure and the solid performance of the tourism, phosphates and derivatives, automotive and aerospace sectors” are all factors that strengthen growth prospects and economic stability of the Kingdom, notes the rating agency, noting that Morocco has managed to withstand several shocks in recent decades, while maintaining its access to domestic and external financing.
Also mentioning the diversification and resilience of the Moroccan economy “which support more solid prospects”, S&P expects the Kingdom’s GDP to grow by 3.6% on average in 2024-2027, compared to 1.5% in 2020- 2023.
The same source further reported that additional support will come from stronger domestic demand, helped by lower inflation and greater private investment, which will benefit from ongoing economic reforms and a stronger growth in the euro zone, Morocco’s “main trading partner”.
“The Moroccan economy will also gradually benefit from the large-scale projects planned in anticipation of the organization of the African Cup of Nations in 2025 and the Football World Cup in 2030, as well as the implementation implementation of socio-economic reforms and the expansion of Morocco’s export capacity,” continued S&P Global Ratings.
On this point, the rating agency recalled that the port of Tanger-Med now has a capacity of three million twenty-foot equivalent units (TEU), “which makes it the largest port in the Mediterranean and of Africa”.
These positive prospects, explains the American institution, “reflect our expectations that Morocco will capitalize on its recent gains made through the implementation of socio-economic and budgetary reforms, which will promote stronger and more inclusive growth, in addition to a reduction in budget deficits”.
The agency also highlighted the efforts undertaken by Morocco to deal with water stress, in particular through the implementation of a large-scale action plan, specifying that this approach will require the mobilization of Significant investments in infrastructure, including new dams and desalination and water recycling plants, as well as measures to improve the efficiency of water consumption.
Among the actions undertaken by Morocco in this area, S&P Global Ratings cited the launch last June of the construction of the Casablanca desalination plant, the largest in Africa, with a production capacity of 300 million m3 per year.
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– 2024-10-02 12:18:38
