- Morocco‘s FDI hits $1.6 billion by May 2024, a 19.6% increase year-over-year.
- Post-COVID recovery, though still below the pre-pandemic peak of $3.5 billion in 2018.
- Global investment climate remains challenging with declining investments in developing economies.
Morocco’s Foreign Direct Investment (FDI) inflows have reached $1.6 billion by the end of May 2024, marking a 19.6% year-over-year increase. This recovery follows a significant downturn in FDI during the post-COVID-19 period.
Globally, developing economies have been struggling with a 9% drop in investment flows in 2023, driven by high interest rates in Europe and the US. Additionally, China saw a 6% decline in FDI, reflecting broader challenges in the international investment landscape.
Morocco’s FDI Recovery: Signs of Hope Amid Global Challenges
The first five months of 2024 have shown promising signs for Morocco’s economy, with Foreign Direct Investments (FDIs) hitting $1.6 billion, a 19.6% increase compared to the previous year. This recovery is noteworthy after the significant declines experienced during the post-COVID era, where FDI plummeted from $3.5 billion in 2018 to just $1.7 billion in 2019.
Despite the encouraging figures, Morocco’s FDI inflows are yet to reach their pre-pandemic heights. The global economic environment remains precarious, with many developing nations facing substantial capital outflows due to increased interest rates in developed economies like Europe and the US. This has contributed to a 9% drop in investment flows to developing economies in 2023.
High interest rates have driven capital away from developing countries, exacerbating economic challenges. The UN Conference on Trade and Development (UNCTAD) reported a 12% decline in investment in developing Asian countries and a 6% decrease in FDI inflows to China. Additionally, international investment project announcements fell sharply, with project finance and Mergers and Acquisitions (M&As) dropping by 21% and 16%, respectively.
Looking forward, UNCTAD forecasts a potential slight improvement in global FDI flows for 2024, contingent on economic conditions stabilizing and borrowing costs decreasing. However, geopolitical tensions and rising public debt continue to pose significant risks, making the investment outlook uncertain. Morocco’s recent FDI recovery is a bright spot in this complex global scenario.
Morocco’s recent surge in Foreign Direct Investments offers a glimmer of hope amid global economic uncertainties. Continued efforts to stabilize the economy and attract investments will be crucial for sustained growth.
“Despite the encouraging figures, Morocco’s FDI inflows are yet to reach their pre-pandemic heights. The global economic environment remains precarious, with many developing nations facing substantial capital outflows due to increased interest rates in developed economies like Europe and the US.”
