The IMF welcomes the resilience of the Moroccan economy and the reforms carried out by the Kingdom

The International Monetary Fund (IMF) recently completed its Article 4 consultations for 2024 with Morocco, highlighting the resilience of the Moroccan economy in the face of a series of substantial challenges, including water stress, a devastating earthquake, and a difficult global economic environment.

According to a report published on May 1 on the IMF website, the IMF Executive Board also conducted the mid-term review of the agreement for access to the flexible credit line, approved the first review of the facility for resilience and sustainability, and discussed changes to the timetable for this latest facility concerning Morocco.

The Moroccan economy has demonstrated “remarkable” resilience, notes the IMF, achieving growth of 3% in 2023 despite difficult conditions. This performance is attributed to dynamic exports and a revival in domestic demand. GDP growth is expected to gradually accelerate to 3.5% over the coming years, driven by the continued implementation of an ambitious structural reform program.

Morocco has also seen an improvement in the management of its budget deficit and current transactions. The budget deficit closed at 4.4% of GDP for 2023, better than expected thanks to higher than expected budget revenues. Likewise, the current account deficit narrowed, thanks to a decline in imports and strong export performance, notably in the automobile and electronics sectors, as well as a rise in remittances. Moroccans living abroad.

The IMF Executive Board expressed agreement with the IMF staff’s assessment, noting that prudent macroeconomic policies and structural reforms should continue to ensure stronger and more inclusive economic growth. They stressed the importance of maintaining efforts in reducing dependence on fossil fuels and in managing climate risks.

In conclusion, the IMF reconfirmed Morocco’s eligibility for the flexible credit line, reflecting the solidity of its macroeconomic and institutional policy frameworks. Future consultations are planned according to the usual 12-month cycle, thus continuing the regular monitoring of the Moroccan economy by the IMF.

LNT