Country Economic Forecasts > Morocco

GDP growth accelerated from 2.4% in 2014 overallto 4.3% in Q2 2015 due to a sharp rise in agricultural output. Despite aslowdown in the non-agricultural sector, we still expect GDP growth of about4.5% for 2015 overall. The main weaknesses in non-farm output were in phosphatemining and tourism, both attributable to modest demand in the Eurozone. And withthe non-farm sector remaining under pressure due to its dependence on tradewith the Eurozone, where demand remains modest, we expect a slowdown in growth to2.8% in 2016 as the one-off boost from agriculture this year fades. But Moroccosmedium-term prospects remain good, given its relatively stable political environment, the success alreadyseen with fiscal consolidation, and the improving business environment, whichwill continue to attract an increasing amount of FDI (evident in the autosector) given its proximity to the EU. As a result, we forecast a renewed pick-up in growth after next year, toclose to 4% a year in 2017-18.