An economic report issued by three international organizations on Morocco and Algeria

French Renault Company factory in northern Morocco

The report pointed out that the decline in oil prices has had a clear impact on the Algerian economy, especially with the continued weakness of industrialization in the country, which caused a decline in GDP and raise inflation, while the report carried more positive data on the Moroccan economy and public policies, expected to increase economic growth In this country in 2017, despite the persistence of some obstacles.

These data are contained in the 16th edition of the Economic Outlook for Africa, released on Monday 22 May 2017, in partnership between the African Development Bank, the United Nations Development Program (UNDP) and the Organization for Economic Co-operation and Development (OECD). The report focuses on industrialization and entrepreneurship.

The report pointed out that the decline in oil prices in Algeria has a clear impact on the proportion of the country's GDP, moving from 3.8 percent in 2015 to 3.5 percent in 2016, noting that industrialization in the country, outside the areas of oil and gas, represents only five percent of the output Which is a very low figure than at the end of the 1980s, as well as a 20 percent reduction in domestic reserves of foreign currency.

The same negative figures were found in the inflation rate of 6.4 percent in 2016, down from 4.8 percent the previous year, which led to a 9.9 percent increase in the prices of manufactured materials and services by 7.4 percent. (FRR) by 60 percent, as well as a continuing trade deficit of 11 percent of GDP.

However, the report carried some positive figures for Algeria, including a decrease in the general budget deficit between the years of 15% to 13% and the deficit in the external trade balance by 3% between the years (14% in 2016) 2.7 million in the private sector, 16 percent in industry, considering that the Algerian contractor has become a key partner of the state in the consultation of decisions and economic directions of the government.

In Morocco, which saw a very limited economic growth rate of 1.5 percent in 2016, the report predicted that this growth would rise to 3.7 percent by 2017. Public policies are starting to bear fruit in the country, including diversification of agriculture growth and industry development, The development of the business climate, according to the Doing Business reports, the continuous development of infrastructure, and attracting investors thanks to the stability of the country.

The report predicted that the country's budget deficit this year will reach 3 percent, referring to two initiatives on public policies in 2016. The first is the organization of the UN Climate Conference (COP 22) in Marrakech, and the accompanying local environmental work, To prevent the circulation of plastic bags, and second to strengthen the country for its relations with African countries, through the return of Morocco to the African Union and the signing of several economic agreements with some countries of the continent.

However, the report expected inflation to rise slightly this year to 2.1 percent, as well as some obstacles to the growth of small and medium enterprises in the country, including education and some aspects of the regulatory climate such as the tax system, judicial and real estate, With positive expectations recorded in this context especially with the development of self-contractor status and extension of utilization of health coverage.