MOROCCO

RB: Despite a moderately improving macroeconomic situation, Morocco will continue to face challenges driven by high unemployment and high inflation, which is expected to fuel increased levels of social unrest. Nonetheless, the government led by Prime Minister Aziz Akhannouch is likely to remain in power at least through 2023, as global factors could ease demand pressures, which could work to the government’s advantage.

Policymaking under the ruling centrist coalition led by Akhannouch is expected to face limited opposition in forming and passing policy. The government will be able to approve key legislation in the short term thanks to its ideological alignment with the monarch, who will likely persuade potential opponents to support the government in case of policy gridlock. The steps taken to reform state-owned enterprises, as well as the activation of the Mohammed VI Fund and the implementation of the new Investment Charter, are widely seen as potential catalysts for foreign direct investment.

JM: Morocco has a sizeable trade deficit it can afford thanks to a strong service sector, especially tourism. The World Bank expects Morocco’s GDP to grow by 3.1% in 2023. The country’s top export is fertilisers, worth $7.6 billion in 2022, followed by vehicles, worth $6.3 billion, electronics, worth $5.9 billion, and apparel, worth $2.7 billion. Its biggest markets for fertilisers are India, Brazil, Bangladesh, Djibouti, and the US.

So what does Morocco need from the world? Morocco’s top imports are mineral fuels, worth $14.9 billion in 2022, followed by electronics, machinery, vehicles, and cereals. Morocco is still closely tied to France. It’s one of the few countries where France is the biggest supplier of cars and trucks, followed by Spain, Germany, and Romania.

Overall, exports increased in 2022 to $41.5 billion from $35.8 billion, with top markets in France, Spain, India, Brazil, and Italy. Meanwhile, imports rose to $71.8 billion from $58 billion. The top sources of imports were Spain, France, China, the US, and Saudi Arabia.