Rabat (IINA) - Morocco is predicted to be a relative outperformer in North Africa over the medium term, according to a new report from the BMI Research Group, a part of Fitch Group.
Over the next few years, the research group predicts that investor interest in Morocco will increase. Investor interest in the country as an export-oriented manufacturing hub for the European market and increasingly to West Africa, as well as relative security compared to the rest of the MENA region, will bode well for Morocco's underlying growth momentum in the next few years.
The agricultural sector remains very important, but it is still vulnerable to unpredictable weather patterns.
Re-joining the African Union (AU) is being seen as a positive move toward Morocco's future as an influential diplomatic leader in the area. Other factors having a positive impact are the country's strengthened ties with the European Union (EU) and the Gulf Cooperation Council (GCC), as well as it's newly reinforced economic ties with Sub-Saharan countries. The issue of the Western Sahara will still loom large. The Western Sahara issue will remain in the forefront of Rabat's foreign policy agenda, and we do not see any significant progress taking place on this issue in the near future.
Morocco's GDP growth is predicted to rise significantly in 2017. A Greater agricultural output is predicted to have a positive impact on the Moroccan economy, following last year's disappointingly poor harvest seasons, Morocco World News reported.
The promise of new energy sources coming online as part of the National Energy Plan 2020, will reduce pressures on Morocco's current account and boost the country's attractiveness for foreign investors. It is predicted that the evolution of these new energy sources will benefit Morocco's economic growth for the next ten years, according to the report.
The inflation rate for Morocco is predicted to accelerate over the course of 2017. The pressures should, however, be short-lived. The rate is predicted to stabilize around 2.0 percent, year over year over the medium term.
Overall, BMI's data predicts that Morocco will benefit from significant inflows of foreign investment. It will also benefit from foreign aid via the GCC and other organizations over the next few years. The report also issues a reminder that the export sector is highly vulnerable to any economic downturn in the Eurozone.
Source: International Islamic News Agency