Morocco's economic recovery hampered by energy costs

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According to Morocco's central bank, the inflaton rate could reach 4,7% by the end of 2022.

Morocco's inflation rate is set to be exceptionally high this year as the country tries to recover from the pandemic as well as the consequences of the Russia - Ukraine war on global energy prices.

Although there the country registered growth in the third quarter of 2021, the increase in energy prices will offset any gains according to economist Rachid Aourraz.

"There is an increase in the prices of phosphates and fertilizers on the international market and this will benefit Morocco, but at the same time there is a very big increase and at higher rates in the global energy market and this will be a burden on the (Moroccan) national budget as well as on businesses and consumers. This rise (in energy costs) cannot be offset by what we can gain from the increase in prices of fertilizers and phosphates on the international market", said the expert.

Car manufacturing, aeronautics, tourism and agri-food industries have become engines of growth in Morocco. The country imports a quarter of its wheat from Ukraine and more than 90% of its oil and gas from Russia.

"During the past 20 years in Morocco, inflation rates have not exceeded 2%, with the exception of a few years when it jumped over 2%. But those years were exceptions. But now it has been noted that for the first time, a very high inflation rate will be recorded, according to the central bank in its latest statement..... So, many manufactured materials and goods will become expensive", asserted the Rabat-based economist.

According to the Moroccan central bank, inflation could reach 4.7% by the end of 2022.

Morocco features regularly in the top three African countries attracting foreign direct investment.

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