Original Coverage & Source Attribution: africa.businessinsider.com
The global lender revealed that this growth is a result of the North African country’s booming agriculture, tourism, and public investment sectors.
Morocco’s projected economic growth index is well above the broader regional outlook.
The wider MENAAP economy, by contrast, is projected to shrink by 2.1% this year after expanding 3.3% in 2025.
Gulf Cooperation Council economies are expected to move by 4.3%, as conflict disrupts energy supplies and trade routes, including traffic through the Strait of Hormuz.
Improved rainfall has helped agriculture, while government spending, tourism and exports have continued to support economic activity.
That momentum is expected to weaken somewhat as the impact of last year’s stronger agricultural output fades. Higher energy costs could also put pressure on household and business spending.
Inflation is projected to rise modestly to 1.2% this year and 1.8% in 2027, from 0.8% in 2025, as reported by MoroccoWorldNews.
The country’s fiscal deficit is expected to remain at 3.5% of GDP in 2026 before edging down to 3.3% next year.
Its current account deficit, however, is projected to widen from 2.1% of GDP last year to 3.6% this year, before narrowing to 2.4% in 2027.
World Bank’s assessment of Morocco after the rebound
The World Bank’s evaluation extends beyond Morocco’s immediate economic performance, focusing on how artificial intelligence might transform the region’s economy.
If unrest in the region subsides, the economy might rise substantially in 2027.
Excluding Iran, the MENAAP economy might grow by 7.8%, aided by the restoration of oil and gas production, the reopening of trade channels, and the unusually weak performance during the crisis.
However, the bank cautioned that a quick rebound should not be mistaken for a sustained increase in economic productivity.
Much of the first development would simply be the resumption of economic activities lost during the conflict.
The harder goal will be to build more productive economies that are better poised for future shocks.
Furthermore, the World Bank’s report shows that AI might be a part of that transformation.
The global lender expects artificial intelligence to boost productivity in MENAAP more than it would diminish jobs through automation.
Less than 10% of jobs are regarded as very vulnerable to near-term automation, although between 13% and 20% might benefit significantly from AI technologies that assist humans in doing their duties.
