Morocco: the economy “strongly impacted” by the war in Ukraine

Morocco: the economy “strongly impacted” by the war in Ukraine

Morocco has been facing for several months continuous price increases, in particular of hydrocarbons, as a consequence in particular of the war in Ukraine.

Lhe world is in the dark, and Morocco is no exception to the rule. Indeed, importer of energy and food products, in particular cereals, the kingdom is “strongly impacted” by the war between Russia and Ukraine, with slow growth and exceptionally high inflation, warned the High Commission in Map (HCP).

Covid-19 and the war in Ukraine

In addition to the international context marked by the shocks of the Covid-19 crisis and the conflict between Russia and Ukraine, there is an unprecedented drought, the worst in 40 years, which is weighing “heavily” on the country’s economy. North Africa dependent on its agriculture (14% of GDP), underlined the HCP in a report presented this week to the media. “This situation has disrupted production and consumption, leading to a significant rise in commodity prices,” noted the HCP in charge of statistics, forecasts, and planning.

Rising inflation and slowing growth

Thus inflation should reach “an exceptional threshold” of 4.9% in 2022, “which should suddenly affect purchasing power and weigh on the profitability of some productive sectors”, before being reduced to 0.8 % in 2023, adds the HCP in its “2023 exploratory economic budget”.

Melissa Galbraith
Melissa Galbraith is the World News reporter for Globe Live Media. She covers all the major events happening around the World. From Europe to Americas, from Asia to Antarctica, Melissa covers it all. Never miss another Major World Event by bookmarking her author page right here.