Morocco's Ambitious Economic Growth Target
On Monday, Moroccan Prime Minister Fatima Zahra Mansouri announced that the newly formed government has set an ambitious target of achieving an average annual economic growth rate of 5% from 2027 to 2031. This initiative marks a notable increase from the expected 4.7% growth for the current year. The Prime Minister expressed the government's commitment to maintaining the budget deficit below 3% of the Gross Domestic Product (GDP), a critical measure for ensuring financial stability and fostering sustainable development.
In her address to parliament, following the swearing-in of government members before His Majesty King Mohammed VI, Mansouri detailed a comprehensive five-year plan. This strategic roadmap includes measures aimed at reducing food prices to more reasonable levels. The government plans to implement strategies for ensuring the availability of essential goods, reforming the meat and fish sectors, and balancing exports with local market needs.
Economic Stability and Social Welfare Initiatives
Mansouri emphasized the government's goal of keeping inflation at a manageable rate of 2% to safeguard purchasing power and overall economic stability. She highlighted intentions to broaden the tax base, adjust income tax policies, and increase direct social assistance for low-income families. Furthermore, the plan aims to elevate private sector contributions to two-thirds of total national investment, demonstrating a significant shift towards greater collaboration with the private sector in driving economic progress.
Additionally, the government is targeting a reduction in public debt to approximately 62% of GDP by the year 2031. To achieve these ambitious goals, the administration will focus on completing the national integrity framework, particularly by criminalizing illicit enrichment and penalizing conflicts of interest, as outlined in Article 36 of the constitution. Mansouri firmly stated, "We believe that institutions will not regain trust without an effective fight against corruption and conflicts of interest."
In light of recent challenges, Morocco has increased its imports of meat and livestock to compensate for significant local shortages caused by prolonged drought conditions. The government has taken steps to exempt imports from customs duties and value-added tax to alleviate food shortages.
Ensuring a decent standard of living and establishing a social state is among the government's top priorities. This involves addressing rising living costs, enhancing family incomes, regulating prices, and guaranteeing the quality of public services. Despite a recent slowdown in inflation rates, with a recorded 0.3% in August compared to 0.6% in July, a recent study revealed that over 76% of Moroccan families report a decline in their living standards.
In a bid to support those in need, the government plans to introduce automatic social compensation for eligible families, equivalent to the monthly electricity and water bill, capped at 100 dirhams (approximately 10 dollars) for primary residences, without requiring any paperwork or visits to administrative offices. This initiative aims to streamline support for vulnerable households.
Furthermore, the government intends to revise pension system reforms, including contribution rates and pension calculation methods, while raising the minimum pension to 3,000 dirhams, compared to the current 1,000 dirhams in the National Social Security Fund and 1,500 dirhams in other pension schemes. The government program will fundamentally focus on establishing the rule of law, improving women's conditions, promoting equality, and empowering women economically through job opportunities, combating violence against women, and expanding their participation in decision-making positions.
As reported by cnnbusinessarabic.com.
