Morocco has achieved a remarkable economic recovery in 2023, thanks to a surge in tourism and a decline in energy imports, according to the latest report from the foreign exchange regulator.
The North African country’s annual trade deficit contracted by 7.3% to 286 billion dirhams ($28.6 billion) in 2023, the lowest level since 2016. This was mainly driven by a drop in energy imports, which fell 20.4% to 122 billion dirhams, as Morocco reduced its dependence on fossil fuels and invested in renewable energy sources.
At the same time, Morocco’s tourism revenue soared to a record 104 billion dirhams, up 11.7% from 2022, as the country welcomed 14.5 million visitors, the highest number in Africa. Morocco’s tourism sector, which accounts for about 10% of its gross domestic product (GDP), benefited from its political stability, cultural diversity, and strategic location as a gateway to Europe and the Middle East.
Morocco also saw a significant increase in its automotive sector exports, which rose by more than 27% to 141 billion dirhams, making it the largest exporter of cars in Africa. Morocco is home to production plants of global carmakers such as Stellantis and Renault, which have expanded their operations in the country in recent years.
Another source of income for Morocco was the remittances from Moroccans living abroad, which reached a record 115 billion dirhams, up 4% from 2022. Morocco has a large diaspora of about 5 million people, mostly in Europe, who send money back to their families and contribute to the country’s foreign exchange reserves.
Morocco’s economic performance in 2023 was in stark contrast to the previous year when the country suffered a severe recession due to the impact of the COVID-19 pandemic and a drought that affected its agricultural output. Morocco’s GDP contracted by 7% in 2022, the worst decline in its history, according to the World Bank.
However, Morocco was able to mitigate the crisis by implementing a swift and comprehensive response to the health and social challenges posed by the pandemic. Morocco launched one of the largest vaccination campaigns in Africa, covering more than 70% of its population, and provided financial and social support to the most vulnerable segments of society.
Morocco also pursued an ambitious reform agenda to improve its business environment, governance, and human capital. Morocco ranked 53rd out of 190 countries in the World Bank’s Doing Business 2023 report, up from 60th in 2022, and scored 61 out of 100 in Transparency International’s Corruption Perceptions Index 2023, up from 53 in 2022.
The World Bank projects that Morocco’s real GDP growth will accelerate to 5.5% in 2024, as domestic and external demand recover and public investment picks up. The World Bank also expects Morocco to continue its structural reforms to enhance its competitiveness, diversify its economy, and create more jobs, especially for the youth.
Morocco’s economic success story in 2023 is an example of resilience and innovation in the face of adversity. Morocco has shown that it is possible to overcome the challenges of the pandemic and achieve sustainable and inclusive development for its people.
Source: Reuters
