World Bank predicts slower economic growth for Morocco amid ongoing drought and global risks

The World Bank projected that Morocco’s economy will experience growth, estimating it will reach 3.9% in 2025 before declining to 3.4% in 2026.

In its latest report on global economic prospects, the  World Bank linked its growth forecast for Morocco to improvements in weather conditions, which would lead to an increase in agricultural production in 2025. 

However, this remains uncertain, as signs of drought are already casting a shadow over the country and the agricultural season.

The report also anticipated an expansion in the fiscal deficit for oil-importing countries, including Morocco, in the Middle East and North Africa.

 It predicted that fiscal consolidation efforts will continue in several economies, including Morocco, Tunisia, and Jordan, in 2025, with additional countries like Algeria likely to join in 2026.

The report noted that Morocco’s economic growth rate is expected to decline to around 2.9% in 2024, primarily due to the drop in agricultural output caused by persistent drought conditions over several years.

This decline reflects the significant impact of climate challenges on Morocco’s agricultural sector, a key pillar of its economy.

Addressing fiscal policies and upcoming reforms, the World Bank’s outlook for Morocco in 2025 suggests that the country will continue implementing financial reforms to improve fiscal balance and ensure long-term economic sustainability.

The report highlighted that regional economic growth faces significant risks, including escalating armed conflicts, ongoing global policy uncertainty, and the effects of global inflation on financing costs.

Compared to the Bank’s June 2024 projections, the report showed a slight improvement in Morocco’s growth forecast for 2025, with an increase of 0.2 percentage points, and 0.3 percentage points for 2026.

The World Bank also predicted that developing economies, which drive 60% of global growth, will end the first quarter of the 21st century with the weakest long-term growth expectations since 2000.

Globally, the economy is projected to grow by 2.7% in 2025 and 2026, maintaining the same pace as in 2024, with a gradual decrease in inflation and interest rates. 

Growth in developing economies is expected to remain stable at around 4% in the coming years.

The World Bank stated that this performance would be weaker than pre-COVID levels, and would not be sufficient to accelerate progress in poverty reduction or achieve broader development goals.

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