(Bloomberg) --

Morocco’s central bank called for speedier reforms and the founding of a state investment fund as the North African nation’s already slowing economy faces the prospect of a damaging drought, according to a presentation in parliament.

Economic growth looks set to fall from more than 7% in 2021 to a best-case scenario of 3.5%, Governor Abdellatif Jouahri told lawmakers on Tuesday. While higher than the 3.2% in the government’s budget, it’s a source of concern and below what Morocco needs “to improve the living conditions of citizens and create enough opportunities for adequate employment,” he said.

The governor’s comments were included in a presentation to a closed-door session of parliament, a copy of which was obtained by Bloomberg.

Authorities must accelerate efforts to reduce inequality, launch the King Mohammed VI Investment Fund, improve governance and accountability and implement tax and pension funds reforms, Jouahri said. 

Morocco is facing scant rainfall this growing season, with the amount of moisture since September at its lowest in at least three decades and leaving little time for a rebound. One in three Moroccans work in agriculture.

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