Morocco and Algeria are two neighboring countries and culturally close, but distant from the political and economic point of view. However, these two Maghreb powers would benefit from forging economic partnerships for the development of the region and their populations.
What would happen if Morocco and Algeria became partners in the economic field? Asked the weekly Jeune Afrique in a report. The subject seems thorny and even taboo, due to political tensions between the two countries. According to OEC Monde, Moroccan exports to Algeria amounted to 134 million euros in 2020, against 115 million euros according to data from the UN International Trade Organization, the newspaper recalls.
“Economic relations between Morocco and Algeria are very weak considering the possible opportunities. To be clearer, Morocco and Spain trade 30 times more than Morocco and Algeria. A World Bank report also indicated that if there is real integration between the two countries, within ten years the GDPs of Algeria and Morocco will increase by 35% and 30% respectively,” explains Jean. -Michel Huet quoted by the newspaper, stating that Algerian exports to Morocco have increased from 395 million euros in 2020 to 650 million euros in 2021, 90% of which are hydrocarbons according to the Foreign Exchange Office.
According to the latest data from the International Monetary Fund (IMF), the Gross Domestic Product (GDP) of Morocco and Algeria had a difference of $20 billion in 2021, a gap that could double and reach $40 billion. over the period 2022-2024 in favor of Algeria, due to the increase in its income from hydrocarbon exports. The economies of the two countries are not sufficiently diversified, underlines the newspaper, which shares the opinion of many experts according to whom greater cooperation between the two countries could accelerate their growth.
According to a recent IMF report, Algeria should register a growth of 4.7% in 2022 and the trade balance, a surplus of 14 billion dollars at the end of August. “We expect a surplus of more than $17 billion by the end of 2022,” Algerian Prime Minister Ayman Ben Abdelrahman announced. Several economic experts agree that Morocco and Algeria would benefit from strengthening their economic cooperation.
