Latest news with #JavierDiazCassou
Ya Biladi
27-03-2025
- Business
- Ya Biladi
World Bank : Morocco's economy to grow 3.6% in 2025
Morocco's economy is projected to grow by 3.6% in 2025 before slightly easing to 3.5% in 2026, according to the World Bank. Favorable weather is expected to boost agriculture, while non-agricultural sectors maintain steady expansion. Speaking in Rabat on Wednesday at the launch of the World Bank's latest Morocco Economic Monitoring Report, Senior Economist Javier Diaz Cassou described the growth outlook as «relatively robust» and in line with pre-pandemic trends. Agricultural GDP is set to rebound in 2025 due to improved rainfall before stabilizing at around 2.6% in the medium term. Meanwhile, non-agricultural GDP is expected to slow slightly due to a base effect following strong expansion in 2024. Inflation remains contained despite Ramadan-related price pressures, with core inflation and expectations measured by Bank Al-Maghrib confirming overall stability, Diaz Cassou noted. The current account deficit is expected to widen modestly but remain below historical averages, reflecting a revival in domestic demand. Fiscal consolidation is set to continue, with the budget deficit narrowing toward pre-pandemic levels, helping public debt decline to between 67% and 68% of GDP. Morocco's public sector is playing an increasingly central role in the economy, aligning with the country's new development model, he added. Despite positive indicators, challenges remain. The inflationary shock has weighed on household purchasing power, dampening consumer confidence. While urban labor markets are improving—with 162,000 jobs expected to be created in 2024—employment growth has lagged behind population expansion, rising just 1.5% over the past decade compared to a 10% increase in the working-age population. The World Bank report highlights Morocco's potential for stronger, more inclusive growth through targeted reforms aimed at improving the business climate and labor market dynamism.
Morocco World
26-03-2025
- Business
- Morocco World
World Bank: Morocco's Economic Growth Set to Reach 3.6% in 2025
Doha – Morocco's economy is projected to grow at 3.6% in 2025, up from 3.2% in 2024, according to the World Bank's latest economic update titled 'Prioritizing reforms to boost the business environment.' The report indicated that despite drought conditions affecting agricultural output in 2024, non-agricultural growth increased to 3.8%, driven by industrial sector revival and gross capital formation rebound. Inflation has dropped below 1%, enabling Bank Al-Maghrib to ease monetary policy. 'Morocco's economic outlook remains robust, characterized by controlled inflation, a strong external position, a steady path towards fiscal consolidation, and a stable debt-to-GDP ratio,' said Ahmadou Moustapha Ndiaye, Division Director for the Maghreb and Malta at the World Bank. The agricultural sector is expected to show improvement in 2025, with agricultural GDP projected to expand by 4.5%. Non-agricultural growth is anticipated to decrease to 3.5% due to base effects, as sectors that demonstrated strong growth in 2024 will continue to grow robustly but at a slightly lower rate than the year before. Recent rainfall has contributed to more favorable conditions for the agricultural sector, with agricultural GDP expected to stabilize at around 2.6% growth in the medium term, according to Javier Diaz Cassou, Senior Principal Economist at the World Bank in Morocco. Read also: Fitch Solutions: Moroccan Economy to Grow 5% in 2025 Despite Agricultural Headwinds The country's external position remains stable, with a moderate current account deficit supported by increasing foreign direct investment inflows. The debt-to-GDP ratio continues its gradual decline, expected to settle between 67% and 68% over the projection period. The budget deficit is following a trend of progressive reduction toward pre-pandemic levels. The labor market presents ongoing challenges. While urban areas created approximately 162,000 jobs in 2024, employment growth has not kept pace with demographic changes. Over the past decade, the working-age population increased by more than 10%, while employment grew by only 1.5%. This gap stems from lingering post-pandemic shock impacts, delayed reform effects, and low women's participation in the labor market. The global lender's analysis shows Morocco outperforms similar-income countries in regulatory frameworks and public services but faces operational efficiency challenges. The Bretton Woods institution recommends that the country address high costs and barriers to formal hiring, improve transparency in dispute resolution, expand digital processes, and complete the legal framework for insolvency cases. Recent inflationary pressures have impacted household purchasing power, leading to decreased confidence indicators. However, Diaz Cassou notes that 'inflation should remain controlled despite certain trends observed during Ramadan, a period when price pressures are traditionally observed.' The current account deficit is expected to widen slightly while remaining notably below historical averages, reflecting the recovery of domestic demand in the Moroccan economy. Capping the discussion, the senior economist spotlighted the public sector as a pivotal force shaping Morocco's economic trajectory, noting its expanding role aligns seamlessly with the ambitions of the New Development Model. Tags: Moroccan Economyworld bank
