Rabat - "Sound economic fundamentals and strong policy implementation have helped stabilize the economy, in spite of the headwinds it has faced", IMF team leader for Morocco, Jean-François Dauphin, said here Monday.
Rabat – “Sound economic fundamentals and strong policy implementation have helped stabilize the economy, in spite of the headwinds it has faced”, IMF team leader for Morocco, Jean-François Dauphin, said here Monday.
“After a bumper crop in 2013, agriculture output has come down and is expected to bring down GDP growth in 2014 to around 3 percent, despite a recent pick-up of non-agricultural activity,” Dauphin said at a press conference to present the findings by an International Monetary Fund (IMF) staff team, who visited Morocco during November 5-17, 2014, to conduct discussions with the Moroccan authorities on the 2014 Article IV consultation, as well as on the first review of economic performance under the Precautionary and Liquidity Line (PLL).
As regards other economic indicators, he noted that inflation remains low, the external current account deficit is narrowing and should reach about 6 percent of GDP, and international reserves have also improved.
“This performance reflects in part the rise in exports from newly developed industries as well as lower capital good and energy imports, the latter mainly because of the recent fall in oil prices,” he pointed out.
He praised the progress made over the last decade in reducing poverty, but underlined that “more needs to be done to increase employment, reduce inequalities, and improve education and access to basic infrastructure”.
In this context, he said that it is important that the authorities continue the reforms undertaken to stabilize the economy, strengthen competitiveness, and build the foundation for stronger and more inclusive growth.
According to the IMF, Morocco’s economy is expected to grow 4.5 percent in 2015, as non-agricultural sectors continue to improve and the agriculture sector returns to a normal trend.
