Aziz Akhannouch continues to work on the configuration of his government. What about the economic challenges that await the new executive?
‘’ The new government will face old economic challenges: boosting Morocco’s economy and ensuring a post-COVID-19 recovery ‘’, the Emirati website Zawya.com reported.
Data from the International Monetary Fund indicate that the Moroccan economy plunged by 7.2% in 2020 and that GDP is expected to rebound by 4.5% this year and register an annual growth rate of less than 5% until at least 2025. In 2019, Economic Growth had slowed to less than 3% with structurally high unemployment. In its report, the Office of the High Commissioner for Planning (HCP) said that GDP gained 1% in the first quarter, suggesting that the economy will need more stimulus.
The future government will have to follow in the wake of the outgoing executive by continuing the reform program implemented as part of the post-COVID-19 recovery. The three main axes of this program are: the creation of a Strategic Investment Fund (the Mohammed VI Fund) to support the private sector, the overhaul of the social protection regime to strengthen human capital and the restructuring of Morocco’s vast network of public enterprises. It will also have to work on the new development model that places a strong emphasis on human development and gender equality, as well as the need to promote private entrepreneurship and boost competitiveness.
The government headed by Aziz Akhannouch will also have to continue to adapt to the diminishing support from the Gulf, further develop the automotive sector, strengthen its strong trade relations with EU states, in addition to its infrastructure and favorable business environment, etc.
By Nouhaila El Bouhli