Forbes Ranks Morocco as Fifth Strongest Economy in Africa
While Morocco experienced a deep recession in 2020, all signs point to the country’s path towards a successful economic recovery.
Forbes Middle East reported that Morocco is expected to emerge as the fifth strongest African economy in 2021, in a recent piece on best performing economies on the continent.
Forbes used the most recent Gross Domestic Product (GDP) data that the International Monetary Fund (IMF) made public to assess the economic outlook for Africa in 2021. With a projected GDP of $124 billion (MAD 1.1 trillion), Morocco will be Africa’s fifth biggest economy this year.
Nigeria, Egypt, South Africa, and Algeria also made an appearance on the list. Nigeria landed itself at the top of the list, with a projected GDP of $514.05 billion (MAD 4.5 trillion). Egypt comes second, with an expected GDP of $394.28 billion (MAD 3.5 trillion), while South Africa comes in a close third, with a projected GDP of $329.53 billion (MAD 2.9 trillion). With an estimated GDP of $151.46 billion (MAD 1.3 trillion), Algeria takes fourth place in this year's ranking.
The IMF’s most recent World Economic Outlook notes that “The rising human toll worldwide and the millions of people that remain unemployed are grim markers of the extreme social and economic strain” on the global community, “Yet, even with high uncertainty about the path of the pandemic, a way out of this health and economic crisis is increasingly visible.”
According to IMF’s data, Morocco’s real GDP is expected to grow by 4.5% in 2021, compared to last year's contraction of 7%. As shown by Forbes, the World Bank cites the combination of COVID-19 and an agricultural shock in the North African country, as the reason for Morocco’s descent into a deep recession in 2020.
Despite the obstacles, Morocco’s economic outlook remains positive, considering the government’s successful crisis response, as well as its “ambitious reforms,” as demonstrated by the country’s recently unveiled new development model.
The IMF predicts Morocco’s GDP, at its current prices, to grow by 9.2% this year, to approximately $124 billion (MAD 1.1 trillion), compared to last year’s $113.55 billion (MAD 1 trillion).
As for Algeria, Forbes expects “a slow pace of economic recovery” throughout 2021, and 2022, citing a decline in international trade, the prolonged closure of the country’s borders, as well as the lockdown measures’ impact on services, construction, and informal work sectors.
Overall, the five countries that Forbes analyzed, represent approximately 58% of Africa’s $2.6 trillion (MAD 23 trillion) GDP for 2021. The IMF predicts that the total GDP of the five countries, at current prices, will grow by 11.8% this year, to $1.5 trillion (MAD 13 trillion), compared to last year's $1.35 trillion (MAD 12 trillion).
Source: Morocco World News.