Morocco’s economy is on the rebound

Significance

Real GDP growth is on track to be at least 6% in 2020, following a 7% contraction last year. Most sectors have bounced back, though not tourism. High levels of vaccination against COVID-19 give the country an advantage few African states can match.

Impacts

• Morocco is seeking first-mover advantage in large-scale vaccine production, but faces competition from South Africa and Egypt.
• Rabat is also looking to attract investment in other future-focused sectors, including electric vehicles and medicinal cannabis.
• The sharp increase in nominal GDP will stabilise, or even reduce, Morocco’s debt ratios, which have risen during the pandemic.