London - Despite some setbacks, Morocco’s economic performance improved considerably in 2013, with a GDP growth of up to 5pc, says the London-based economic intelligence group "Oxford Business Group".
London – Despite some setbacks, Morocco’s economic performance improved considerably in 2013, with a GDP growth of up to 5pc, says the London-based economic intelligence group “Oxford Business Group”.
“Though low demand from Europe was still a challenge last year, stronger agricultural output and high foreign direct investment, together with efforts to diversify export markets and restore the fiscal balance, pushed GDP growth up to 5%”, a study of the think-tank notes.
The planned 2014 budget has shifted funds to capital spending for infrastructure and housing construction, which along with sustained industrial activity will help sustain a still-robust level of expansion over the coming year, writes the group which says “Growth estimates for this year range from 2.5% by Moroccan authorities to 4% by the IMF.”
Recalling that “December IMF assessment noted that Morocco’s public debt, though high, is sustainable, and that the fiscal deficit is beginning to shrink as the government pulls back its expenditures” , the study reports that “blanket subsidies are to be replaced with a system that targets the disadvantaged more effectively”. Progress in this area is, however, gaining traction, and the 2014 budget aims to reduce the annual deficit to 4.9% of GDP from about 5.5% in 2013.
To finance state projects in energy and infrastructure, Morocco will receive from the IMF, $4bn (€2.9bn) -up to $1bn (732m Euros) a year between 2014 and 2017″, the study underscores considering this move as “a vote of confidence” for Morocco’s economic reform program.
The OBG notes that the Moroccan government is also seeking to bolster the economy and public finances through international debt markets, and may soon sell 1bn Euros in eurobonds, which would make it the second-largest issuer of sovereign eurobonds in Africa, after it raised last May 549m euros through a debt issue last May.