In a report published January 5th, 2010 on Morocco, the Oxford Business Group (OBG) stated that Morocco`s economy continued to perform strongly in the third quarter of 2011, with GDP growth slightly lower than in previous quarters but still strongly outpacing its European neighbours to the north. Inflation was also down on recent months to very low levels
The International Monetary Fund (IMF) has forecast further healthy expansion in 2012, saying that average GDP growth could reach as much as 6% in the medium term.
Moroccan GDP growth in 2011, which the IMF expects to be among the region`s highest at 4.5-5%, was helped by plentiful rainfall that boosted the 2010-11 agricultural season. Moroccan agriculture accounts for between 13% and 17% of GDP and remains highly dependent on rainfall, which can therefore have a significant impact on overall economic growth. The Moroccan Finance Ministry also expects GDP growth for 2011 as a whole to be roughly 5%.
Challenges for 2012 include tackling the country`s rising subsidy bill and fiscal deficit and keeping growth on track in the face of economic problems in the EU, Morocco?s largest trading partner.
With such ambitious structural plans underway, Morocco is well placed to ride out 2012, continuing the growth it saw in 2011 and avoiding the threat of a slowdown from Europe.