IMF: The Moroccan economy continued to demonstrate “resilience”


The Moroccan economy “continued to demonstrate resilience in the face of various shocks”, underlined the Executive Board of the International Monetary Fund (IMF) at the end of the 2024 Article IV consultations with Morocco.

The Moroccan economy once again demonstrated resilience in the face of negative shocks in 2023, as economic activity accelerated, inflation slowed and the current account deficit narrowed despite headwinds linked to water shortages, last September’s earthquake and weaker growth in the euro zone, the IMF said in a press release published on Wednesday.

The directors of the Washington-based financial institution were encouraged by “the progress” made by Morocco in respecting the conditions of the agreement under the Resilience and Sustainability Facility, the press release underlined. They also welcomed ongoing efforts related to the National Water Program and plans to achieve net zero emissions by 2050.

Likewise, they agreed that Morocco continues to meet the qualification criteria for the flexible credit line (LCM), “given its very solid macroeconomic policies and institutional policy frameworks, as well as its commitment to the continuation of reforms,” indicated the Bretton Woods institution.

The “ambitious” infrastructure plan announced by the Kingdom, particularly in the water and energy sectors, should stimulate investment and growth over the coming years, underlined the international financial institution.

The current account should gradually converge towards the norm in the medium term, noted the same source, noting that the budget deficit in 2023 was lower than the level projected in the budget and the authorities reiterated their commitment to gradual fiscal consolidation in over the next three years.

The implementation of the structural reform program continued, particularly with regard to the overhaul of the social protection, health and education systems, noted the press release.

The IMF Executive Board also praised the “very solid” macroeconomic policies and institutional frameworks put in place by Morocco and “which supported the resumption of growth and the decline in inflation.”

The directors also expressed their support for the monetary policy of Bank Al-Maghrib (BAM), welcoming Morocco’s “progress” in strengthening its financial supervision and regulation framework.

They also welcomed Morocco’s “firm determination” to implement structural reforms, noting that reform of social protection, health and education systems would improve equity and quality of access and support capital human in the long term.

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