Morocco Economic Update : The Recovery is Running Dry
The Moroccan economy staged a strong recovery in 2021. However, Morocco is once again suffering the impact of a string of adverse shocks. The beginning of the agricultural season has been unusually dry, and a poor cereal crop is to be expected for...
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| Format: | Report |
| Language: | English en_US |
| Published: |
Washington, DC : World Bank
2022
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| Online Access: | http://documents.worldbank.org/curated/en/099529307192239926/IDU020d792070df4a04e830957f0f9fd56c0f71e http://hdl.handle.net/10986/37729 |
| Summary: | The Moroccan economy staged a strong
recovery in 2021. However, Morocco is once again suffering
the impact of a string of adverse shocks. The beginning of
the agricultural season has been unusually dry, and a poor
cereal crop is to be expected for 2022. This coincides with
a slowing of the global economy and rising international
commodity prices, adverse trends that severely intensified
following the Russian invasion of Ukraine. Ongoing shocks
are affecting fiscal and external balances. Albeit somewhat
more moderately than in other countries, Morocco is
beginning to face intense inflationary pressures. Recent
droughts serve as a stark reminder of the exposure of the
Moroccan economy to rainfall shocks. Infrastructure
development is a necessary but not sufficient condition to
cope with water scarcity. Historically, Morocco has relied
on massive water storage and irrigation investments to cope
with highly variable rainfall patterns. Such investments are
more necessary than ever, but international experience
suggests that to cope with water scarcity, “engineering
solutions” need to be coupled by effective water demand
management policies. |
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