Morocco’s economy continues to rebound despite the 2023 earthquake and droughts. 

The country is benefitting from a stable macroeconomy, and the public deficit is narrowing.

GDP growth is forecast at 3.5% in 2024, supported by strong investment and exports.

Food price inflation has fallen, and overall inflation is expected to decline to 2.3% in 2024. 

With an ambitious vision in the New Development Model, Morocco is implementing major reforms to encourage private investment and enhance social protection.

While labour productivity has been increasing, it remains low. Morocco can further lift productivity growth through structural reforms that build on existing policy initiatives. 

To boost productivity:

• Upskill the labour force
  
• Increase the efficiency of public investment
• Ensure competition and a level playing field 
• Continue efforts to tackle corruption
• Deliver favourable conditions for digitalisation and innovation

Morocco has a young and growing workforce, but the labour market suffers from widespread informality.

Informality often keeps people in low-wage and poor-quality jobs, especially in agriculture and rural areas. Tackling it would increase revenues and help put firms on a level playing field.

To reduce informality: 

• Implement the ongoing social protection reforms and reduce taxes on low-wage earners 
• Ease restrictive employment rules  
• Strengthen tax enforcement  

The labour market is also characterized by high youth unemployment and low female employment. 

To create better jobs for all:  

• Provide work-based vocational training and apprenticeships 
• Implement the on-going school reform  
• Extend free childcare to mothers with young children 
• Address existing gender stereotypes 

Morocco has made an ambitious commitment to reduce carbon emissions by 45% by 2030 and to reach net zero by 2050. Stronger climate policies are needed to reach these goals.  

To accelerate emissions reductions:

• Implement the measures outlined in the National Low Carbon Strategy
  
• Establish a broad-based approach to carbon pricing and taxation

As average rainfall has declined, water is increasingly scarce.

To ease water stress:

• Gradually raise the price of water to reflect its scarcity while taking measures to manage the social impact 
• Implement planned infrastructure investments

To learn more, read our Economic Survey of Morocco 2024.