Morocco Has an Opportunity to Increase Its Economy by 20% If Reforms Are Implemented

SadaNews - Morocco could increase its GDP by 20% by 2035 if it focuses on enhancing competition within markets, opening up to private investment, and supporting the inclusion of women and youth in the formal economy, according to two recent reports by the World Bank.

This acceleration in growth could create an additional 1.7 million jobs over the next decade, and 2.5 million jobs by 2050, with real wages rising by 15% compared to the baseline scenario, according to the reports presented on Tuesday in the capital, Rabat.

Morocco's GDP is estimated at about $160 billion in 2024, according to official data from the High Commission for Planning, the government agency for statistics. It is estimated that GDP grew by nearly 5% last year. In the scenario proposed by the World Bank, average economic growth is expected to reach 5.4% over the next quarter-century.

High Growth and Job Deficit

The World Bank indicates that government investment in Morocco, despite reaching about 30% of GDP, has not translated into creating enough job opportunities, as the economy has faced an annual deficit of approximately 370,000 jobs since 2020.

Experts from the institution attribute this situation to the country's development model being primarily reliant on capital accumulation and weak productivity gains, highlighting the extensive presence of the government sector in several areas, which has affected market dynamics and weakened the emergence of more productive private companies.

Regarding private sector opportunities, the World Bank sees that the kingdom offers investment potentials in the medium term in four key sectors: solar energy, low-carbon textile manufacturing, the conversion of argan tree products into cosmetics, and marine aquaculture.

The report also indicates that simplifying and clarifying regulatory frameworks, facilitating and digitizing licensing procedures, improving access to real estate and green energy, and enhancing standards systems could attract about $7.4 billion in private investments in these four sectors, contributing to the creation of more than 166,000 job opportunities over the next five to ten years.