This article was automatically translated from HIBAPRESS, the Arabic version:
Hibapress
The Board of Directors of the International Monetary Fund (IMF) approved the disbursement in favor of Morocco of the third tranche for facility for resilience and sustainability, for an amount of around $ 496 million.
The Moroccan economy continued to be resilient despite a new year of drought. Growth should accelerate in the medium term, carried by greater investments and the continuation of structural reforms, the IMF said in a press release published on Tuesday in Washington.
This new financing relates total disbursement for this program to around 1.24 billion dollars.
Cited in the press release, the deputy director general and acting president of the IMF, Kenji Okamura, noted that the Moroccan economy “continued to show resilience in the face of negative shocks, testifying to the solidity of the country’s policies and economic frameworks”.
“Despite a new drought, economic activity has only slowed down, reaching approximately 3.2 % in 2024, against 3.4 % in 2023, thanks to robust domestic demand. GDP growth should accelerate to reach around 3.7 % in the coming years, carried by a new cycle of infrastructure projects and the continuation of the implementation of the structural reform program. These reforms are essential to strengthen growth, make it more resilient, job creator and more inclusive, “he added.
According to the international financial institution, the current deficit widened slightly, while unemployment has remained high, at around 13 %, mainly due to job losses in the agricultural sector. GDP growth should also accelerate to reach around 3.7 % in the coming years, supported by a new series of infrastructure projects and the continuation of the implementation of the structural reform program.
“Inflation further slowed down in 2024, mainly thanks to the attenuation of the impact of tenders. This prompted Bank Al-Maghrib (BAM) to lower its key rate twice, in June and December. The Dirham continued to evolve in the fluctuation margin of ± 5 %, ”said the press release.
The budgetary deficit of the central administration has improved more than expected in the 2024 budget. The overall deficit of 2024 was established at 4.1 % of GDP, about 0.2 % less than expected in the budget of 2024. This reflects, according to the IMF, tax revenue superior to forecasts which have more than compensated for the increase in expenses. The reform of the organic finance law provides for the introduction of a new budgetary rule based on an anchoring the debt in the medium term.
The implementation of the announced structural reform program continued. New measures have been taken to restructure public enterprises, make the Mohammed VI fund operational for investment and implement the new investment charter.
According to the IMF, “Morocco continued to progress in strengthening its resilience to climate change in the context of ease for resilience and sustainability. The measures implemented within the framework of the third and last review of the agreement aim to better protect groundwater resources, to prepare the field for a modification of water pricing, to improve the regulatory framework of the electricity market in order to encourage the production of renewable energy by the private sector, and to strengthen the resilience of budget and financial systems at risks linked to climate change.
