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Rabat – Morocco’s economy recovered 0.7% in the first quarter of 2021 after a year of deterioration congruent with global economic trends.
Estimates predict a 14.7% increase in economic production for the second quarter falling just short of the 15.1% increase in the same quarter of 2020.
Analysts claim the global economy improved slowly in the first quarter due to the inauguration of vaccination campaigns and the prevalence of health restrictions in accordance with the various waves of the pandemic.
Unemployment reached a peak of 12.9% in September of 2020, up 3.5% from the same time in 2019. Currently, the unemployment rate is holding steady at 11.9%.
Morocco’s economy relies heavily on its foreign trading partners such as Spain, France, and the United States and the World Bank predicts GDP will grow 4% in 2021.
Additionally, the tourism sector suffered a 78% deficit which severely impacted the economic recovery. Tourism is recovering gradually although the US State Department still considers the kingdom a level 3 risk and advises Americans to reconsider travel.
Global demand for Moroccan exports rose 3% in the first quarter of 2021 and the World Bank suggests demand will steadily increase as trade restrictions lighten during the transition into a post-pandemic period.
Despite the degradation of the economy, Morocco still ranks 53rd out of 190 countries according to the World Bank. The ranking is up 50 points from the last decade and serves as a reminder of Morocco’s growing economic influence in the global economy.