A recent report from Ernst & Young forecasts a positive economic outlook for Morocco in 2025, driven by a combination of factors including declining inflation and a more stable regional landscape.
The report, “Global Economic Outlook: Navigating Cross Currents in 2025,” projects a strong acceleration in the Middle East and North Africa region’s GDP growth, fuelled by the easing of oil production cuts by OPEC+. This, in turn, is expected to stabilize oil prices and positively impact the Moroccan economy.
The report emphasizes the importance of the government’s ongoing efforts to maintain sound fiscal management and expand social safety nets to safeguard the economy from potential external shocks, such as regional geopolitical tensions or global market fluctuations.
The government’s initiatives to enhance regional and international cooperation with Gulf countries and the European Union are seen as crucial for bolstering the national economy this year.
Morocco has shown proactive measures to support this growth, including a recent interest rate cut aimed at stimulating economic activity.
Despite facing inflationary pressures, Morocco has managed to maintain price stability through a combination of monetary and fiscal policies.
The report says that Morocco needs to diversify its economy and cultivate strategic sectors such as renewable energy, tourism, and manufacturing to ensure sustainable growth.
The report adds that foreign direct investment is expected to play a crucial role, particularly as improving oil prices strengthens economic ties with Gulf nations.
The report cautions against complacency. Geopolitical risks and global market volatility remain significant threats.
To mitigate these risks, the report recommends a focus on fiscal stability, expanding social safety nets, and strengthening international partnerships, particularly with the European Union.
