[{"data":1,"prerenderedAt":-1},["ShallowReactive",2],{"doc-detail-112681-en":3,"doc-seo-112681-105":29,"detail-sidebar-cat-0-en-105":91},{"code":4,"msg":5,"data":6},0,"success",{"doc_id":7,"user_id":8,"nickname":9,"user_avatar":10,"doc_module":4,"category_id":11,"category_name":12,"doc_title":13,"doc_description":14,"doc_content":15,"file_id":16,"file_url":17,"file_type":18,"file_size":19,"view_count":20,"is_deleted":4,"is_public":20,"is_downloadable":20,"audit_status":20,"page_count":21,"language":22,"language_code":23,"site_id":24,"html_lang":23,"table_of_contents":25,"faqs":26,"seo_title":13,"seo_description":14,"update_tm":27,"read_time":28},112681,1374391975076,"Riley","https://ap-avatar.wpscdn.com/avatar/14000253ca4ec9f6853?x-image-process=image/resize,m_fixed,w_180,h_180&k=1783305029341752051",8,"Research & Report","Morocco - Country Partnership Framework for the Period FY2026-2035 - Annex 5 - Streamlined 2025 Systematic Country Diagnostic","This annex presents the 2025 streamlined Systematic Country Diagnostic for Morocco, building on the 2018 SCD priorities to overcome structural constraints and support inclusive growth. It reviews progress since 2000, including improved poverty reduction, health outcomes, and declining inequality, alongside slowing reform momentum in the 2010s due to weaker productivity and market distortions. It also assesses shocks since 2020, highlighting stalled social gains and job-creation challenges, and outlines needed adjustments to reflect evolving development conditions.","Public Disclosure Authorized Public Disclosure Authorized  \nAnnex 5: Streamlined 2025Systematic Country Diagnosticfor Morocco  \nThe 2018 Systemic Country Diagnostic (SCD) identified key priority areas aimed at overcoming structural constraints to spur economic growth and promote access to opportunities. These included: (i) better market allocation of resources across private firms/sectors, while ensuring growth dividends are globally shared, (ii) pushing the efficiency frontier to achieve convergence and cross the barrier to become an emerging market economy, and (iii) taking into account climate change and its potential effects to ensure environmental and natural resources’ sustainability. This 2025 streamlined SCD takes stock of these priorities, and, as needed, proposes adjustments so as to reflect changes to Morocco’s development environment.  \nI. Recent Developments. A Tale of Two Tempos: Commendable Progress on Macro and Mixed Picture on Job Creation and Inclusive Growth  \nMorocco’s strong economic performance between 2000 and 2019 delivered substantial improvements in living standards. Economic growth was higher and less volatile than in previous decades, with no recession occurring during this period, which resulted in a pronounced improvement in living standards (Figures 1-3) . Poverty incidence fell from over 15 percent in the early 2000s to 1.7 percent in 2019, life expectancy at birth grew from 67 years in 2001 to 74 in 2019, and inequality decreased: the consumption Gini index dropped from 40.6 in 2001 to 38.5 in 2019. These achievements reflect a sound macroeconomic management, a public sector-led investment effort (capital accumulation explains more than 70 percent of real GDP growth), and market-oriented reforms—mostly during the early 2000s—that included liberalization of international trade, which allowed Morocco’s integration in global value chains.  \nDespite progress, a loss of momentum in market reforms in the 2010s slowed down economic growth. While the economy experienced average annual GDP growth of 4.9 percent between 2000 and 2009, growth declined to 3.5 percent during the subsequent decade of 2010-2019. This slowing down was due in part to external shocks emanating from the global and Eurozone financial crises but also by the weakening contribution of productivity to Morocco’s growth trajectory, despite the massive accumulation of capital that has taken place. In part, this is the result of a loss of momentum of growthenhancing reforms during this period, specifically policies to stimulate business dynamism and efficient markets. Recent firm-level evidence reveals that weak productivity growth is primarily due to allocative inefficiencies rooted in market distortions, and the weak emergence of innovative high-growth firms.5  \nLarge shocks since 2020 have tested Morocco’s development model and its inclusiveness. Since 2020, the economy has faced both external shocks (COVID-19, global commodity price fluctuations, supply chain disruptions) and domestic challenges (five consecutive drought years, Haouz earthquake6) . Although these shocks have been absorbed comparatively well thanks to strong fundamentals, including sufficient gross official reserves, they resulted in more tepid annual growth (averaging only about 1.7 percent between 2020-2024) . Moreover, social progress has stalled since the C OVID-19 shock, with poverty incidence increasing by 2.5 percentage points to about 4 percent in 2022, inequality worsening (Gini index of 40.5 percent), regional disparities persist, and current growth rates remain inadequate to  \n5 Jobs and Growth Report (WB, Forthcoming) .  \n6 The September 2023 Al Haouz earthquake itself caused an estimated damage of US$3 billion, equivalent to 2.6% of Morocco's GDP in 2022.  \ngenerate sufficient employment, achieve upper-middle-income status by 2030, or meaningfully narrow the gap with peer countries.  \n\n| Figure 1 Economic growth |  |  |  |  |  |  |  |  |  |  |  |  |  |  | ","cbCaihJ0O1J9kPjb","https://ap.wps.com/l/cbCaihJ0O1J9kPjb","pdf",830261,1,12,"English","en",105,"# Recent Developments\n## Progress in macroeconomic performance and mixed job outcomes\n## Market reform momentum and productivity constraints\n## Shocks since 2020 and social inclusion impacts\n# Policy Context\n## New Development Model and human capital focus\n## Structural reforms to diversify growth and raise private investment","[{\"question\":\"What key development priorities were identified in Morocco’s 2018 Systemic Country Diagnostic (SCD)?\",\"answer\":\"The 2018 SCD focused on better resource allocation across private firms and sectors, pushing efficiency to support convergence toward emerging market status, and considering climate change to sustain environmental and natural resources.\"},{\"question\":\"Why did economic growth slow during 2010–2019 despite earlier gains?\",\"answer\":\"Growth declined due to external shocks affecting the economy and weakening productivity contributions, reflecting reduced momentum in growth-enhancing reforms, especially those supporting business dynamism and efficient markets.\"},{\"question\":\"How have shocks since 2020 affected Morocco’s growth and inclusion outcomes?\",\"answer\":\"External shocks (COVID-19, commodity fluctuations, supply disruptions) and domestic challenges (multiple drought years and the Al Haouz earthquake) were absorbed through strong fundamentals, but produced slower growth and stalled social progress, with higher poverty and persistent inequality and regional disparities.\"}]",1784496573,30,{"code":4,"msg":30,"data":31},"ok",{"site_id":24,"language":23,"slug":32,"title":13,"keywords":33,"description":14,"schema_data":34,"social_meta":86,"head_meta":88,"extra_data":90,"updated_unix":27},"morocco-country-partnership-framework-for-the-period-fy2026-2035-annex-5-streamlined-2025-systematic-country-diagnostic","",{"@graph":35,"@context":85},[36,53,68],{"@type":37,"itemListElement":38},"BreadcrumbList",[39,43,47,50],{"item":40,"name":41,"@type":42,"position":20},"https://docshare.wps.com","Home","ListItem",{"item":44,"name":45,"@type":42,"position":46},"https://docshare.wps.com/document/","Document",2,{"item":48,"name":12,"@type":42,"position":49},"https://docshare.wps.com/document/research-report/",3,{"item":51,"name":13,"@type":42,"position":52},"https://docshare.wps.com/document/morocco-country-partnership-framework-for-the-period-fy2026-2035-annex-5-streamlined-2025-systematic-country-diagnostic/112681/",4,{"url":51,"name":13,"@type":54,"author":55,"headline":13,"publisher":57,"fileFormat":60,"inLanguage":23,"description":14,"dateModified":61,"datePublished":62,"encodingFormat":60,"isAccessibleForFree":63,"interactionStatistic":64},"DigitalDocument",{"name":9,"@type":56},"Person",{"url":40,"name":58,"@type":59},"DocShare","Organization","application/pdf","2026-07-20","2026-07-19",true,{"@type":65,"interactionType":66,"userInteractionCount":20},"InteractionCounter",{"@type":67},"ViewAction",{"@type":69,"mainEntity":70},"FAQPage",[71,77,81],{"name":72,"@type":73,"acceptedAnswer":74},"What key development priorities were identified in Morocco’s 2018 Systemic Country Diagnostic (SCD)?","Question",{"text":75,"@type":76},"The 2018 SCD focused on better resource allocation across private firms and sectors, pushing efficiency to support convergence toward emerging market status, and considering climate change to sustain environmental and natural resources.","Answer",{"name":78,"@type":73,"acceptedAnswer":79},"Why did economic growth slow during 2010–2019 despite earlier gains?",{"text":80,"@type":76},"Growth declined due to external shocks affecting the economy and weakening productivity contributions, reflecting reduced momentum in growth-enhancing reforms, especially those supporting business dynamism and efficient markets.",{"name":82,"@type":73,"acceptedAnswer":83},"How have shocks since 2020 affected Morocco’s growth and inclusion outcomes?",{"text":84,"@type":76},"External shocks (COVID-19, commodity fluctuations, supply disruptions) and domestic challenges (multiple drought years and the Al Haouz earthquake) were absorbed through strong fundamentals, but produced slower growth and stalled social progress, with higher poverty and persistent inequality and regional disparities.","https://schema.org",{"og:url":51,"og:type":87,"og:title":13,"og:site_name":58,"og:description":14},"article",{"robots":89,"canonical":51},"index,follow",{"doc_id":7,"site_id":24},{"code":4,"msg":5,"data":92},[93,97,101,105,110,115,120,122,127,130,134],{"id":20,"doc_module":4,"doc_module_name":45,"category_name":94,"show_sort_weight":95,"slug":96},"Story & 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