According to the 2021 edition of the African Economic Bank, published by the African Development Bank (AfDB) under the title “Debt Solutions to Development: A Roadmap for Africa”, Algeria may resume with development in 2021. “In this case, there will be a significant rebound in actual growth, estimated at 3.4% of GDP in 2021.”
According to the ADB, “a significant reduction in the high budget deficit, which will be 10.3% of GDP in 2021 and 8.7% in 2022”, will be a return to higher levels of growth. The trend will be the same for the current account deficit, which according to ADB, will be 13.8% in 2021 and 11.1% in 2022.
However, according to the African Development Bank (AfDB), real GDP growth in Morocco is expected to reach 4.5% in 2021.
“Real GDP growth is expected to reach 4.5% in 2021 as the economy returns from a major recession and agricultural growth,” Afrub said in its annual “Africa Economic Outlook” report.
The Pan-African Financial Institution said that exports of auto parts as well as phosphates and derivatives have picked up during the third quarter of 2020 and are expected to strengthen in the near term as global demand increases. The sluggishness of tourism, hotel and restaurant areas which are expected to continue ”.
As a result, the current account deficit and the budget deficit are expected to reduce and inflationary pressures are expected to persist. The FFDB also specifies that “the mission is entrusted to the Special Commission to promote inclusive development to incorporate the development model appointed by King Mohammed VI”.
On another note, the report stated that in 2020, Morocco received emergency donor money, including $ 3 billion from the International Monetary Fund and $ 460 million from the ADB, to mitigate the effects of the crisis. for.
In September 2020, Morocco also issued a € 1 billion bond. These financial contributions have helped strengthen the foreign exchange reserves, representing nearly three times the debt due to imports and a short-term of about 8.1 months.
At the level of the continent, the FFDB estimated in its annual report that Africa should experience economic growth of 3.4% in 2021, although it speculates that the epidemic and economic crisis shocks had an impact on the fiscal balance and direct impact The debt burden of countries. Africa’s average debt-to-GDP ratio is expected to increase by 10 to 15 percent over the medium term.