Inflation is expected to remain at 2021’s level of 1.8% this year, compared with 0.8% in 2020, the agency said in a report.
Household purchasing power will grow by just 0.7% in 2022, compared with an average growth rate of 1.1% between 2010 and 2019, the agency said, adding household debt would be equivalent to 34% of GDP this year.
The Moroccan government has announced it will increase spending on subsidies for soft wheat, sugar and cooking gas to 17 billion dirhams ($1.8 billion) in 2022, following a surge in prices in the international market.
Spending on subsidies would represent 1.6% of GDP this year, the agency said.
Thanks to an improvement in domestic and foreign demand and an exceptional crop year, Morocco’s economy grew by 7.2% last year after a contraction of 6.3 in 2020, it said.
This year, Morocco’s economic growth would slow to 2.9% assuming an average crop harvest, the agency said.
The fiscal deficit would narrow to 6.1% this year compared to 6.5% in 2021, partly thanks to higher tax revenue, it said.
Source: Economy - investing.com
