As a country with a rich history and a place of crossroads, Morocco has always chosen a path of plurality, inclusion and transmission. The nation is determined to achieve civilizational growth in which all dimensions of development – social, economic, political and cultural – are harnessed to promote an ambitious, forward-looking vision that is fueled by a sense of belonging to a single national community. It strives to bring together all its components and build a flourishing future based on a strong civic spirit and a sense of harmony, thus ensuring the well-being of all its citizens. In order to ensure the success of the country, His Majesty King Mohammed VI established the Special Commission on the Development Model in November 2019.
Since the early 2000s, Morocco has been engrossed in a dynamic of reforms that has opened up broad development prospects for the country on various platforms like – easing of the political environment, transparency and credibility of the electoral process, Economic modernization (motorways, railways, ports and airport infrastructures, deregulation and privatization, opening up of trade to the outside world, launch of new sectorial strategies: industry, agriculture, tourism, fishing, renewable forms of energy), which has pushed the country towards growth, the creation of jobs, the emergence of the middle class and the sustainability of macroeconomic fundamentals, additionally implementation of ambitious reforms (INDH, AMO, social housing, elimination of slums) and social safety nets (RAMED, Tayssir) have been done, which have helped to reduce social insufficiencies like significant reduction of poverty, extension of schooling, electrification and opening up of rural areas, reduction of unhygienic housing and lastly, the prevention of pollution as well as climate change. In terms of human capital development, efforts to increase access have made it possible to extend basic schooling and broaden the range of healthcare services.
According to World Bank’s latest report, titled “Morocco Economic Monitor, January 2022: From Recovery to Acceleration”, it states that reinforcing human capital, economic participation, and firm’s productivity would allow the country to meet its growth objectives listed in the New Development Model (NDM). It further adds that as Morocco’s GDP expects to grow by 3.2% in 2022, implementing a multifaceted reform agenda is crucial to achieving broad-based growth and job creation in the country. The report also mentioned that the fixed capital accumulation has been the main driver of growth, with limited productivity gains and an insufficient contribution of labour despite a favourable demographic situation. After the national economic crisis amid COVID-19, the country displayed growth rate of 5.3% in 2021 due to the positive performance of agriculture and the external demand for industrial and agricultural exports.
The Kingdom has had great success in recent years. In 2019, tourism accounted for 7% of GDP and more than 550,000 direct jobs as well as the agricultural sector, that has been a major contributor to the national economy in terms of GDP and employment as over the past two decades, agricultural policy has aimed to protect traditional and solidarity-based agriculture while laying the groundwork for a modern, productive and export-oriented agriculture. Despite being referred to as a traditional sector, agriculture has shown great potential for development and upgrading through the local processing of plant and animal production. A strong focus on value-adding is made possible by production growth achievements, which now ensure a high volume and quality supply in several sub-sectors.
The economic recovery is expected to continue over the next few years, although the pandemic has left some scars, the GDP growth is projected at around 3 percent in 2022 as agriculture output returns to average levels and non-agricultural activity continues to recover. Recent inflationary pressures have remained manageable and are expected to wane in the medium term, as cost pressures from global supply disruptions are reabsorbed. After last year’s sharp contraction, the current account deficit is projected to return this year to levels closer to before the pandemic and to stabilize around 3.5 percent of GDP over the medium term. Morocco emerges from the pandemic with a much stronger international reserve position. The New Development Model has promising proposals and recommendations for strengthening the competitiveness of Moroccan firms, improving governance, boosting human capital, and building a more inclusive society.
Photo Credit : https://en.wikipedia.org/wiki/Rabat#/media/File:Morocco_-Rabat(31387775324).jpg
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