Washington - The International Monetary Fund (IMF) highlighted the "commendable progress" made by the Moroccan economy with growth rate prospects expected at 4.5% in 2015.
Washington – The International Monetary Fund (IMF) highlighted the “commendable progress” made by the Moroccan economy with growth rate prospects expected at 4.5% in 2015.
“We expect the Moroccan economy to strengthen going forward. In 2015, economic growth is expected to reach about 4½ percent, inflation is projected to remain low (around 1½ percent), while the fiscal deficit continues to narrow,” IMF Mission Chief for Morocco, Jean-François Dauphin, said on Monday.
In light of the ongoing reform process, Dauphin pointed out the promising economic outlook of the country saying that “growth could further accelerate and reach the 5-5½ percent range over the medium term”.
Dauphin, who made the statements in an article published in the IMF Survey Magazine: Countries & Regions, also described as “commendable” the efforts undertaken by Moroccan authorities to maintain macroeconomic stability despite the difficult external environment, noting that the country is called upon to deploy more efforts to consolidate macroeconomic gains.
“There’s still more to be done to foster higher and more inclusive growth by lowering unemployment and poverty incidence, notwithstanding progress made in the last decade,” the IMF official said.
While applauding Morocco for undertaken reforms to reduce economic imbalances over the last three years, Dauphin said the IMF supports Morocco’s economic program through a Precautionary and Liquidity Line, “to help address economic vulnerabilities.”
“The authorities have implemented a package of economic reform policies, supported by an IMF Precautionary and Liquidity Line, to help address economic vulnerabilities,” he said, citing in particular the “significant reduction” in the fiscal deficit following an “impressive reform” of the subsidy system.
As a result, the current account deficit has also narrowed and foreign exchange reserves have increased. The emergence of new export sectors and the recent decline in international oil prices have also played a role in the rebalancing process.
The IMF official also noted that the emergence of new export sectors and the recent decline in international oil prices have also played a role in the rebalancing process.
He also recalled the adoption in November 2014of a new organic budget law, which” is expected to strengthen and modernize the budget framework” adding that “a new banking law was also adopted, which broadens the regulatory and supervisory role of Morocco’s Central Bank”.
In the same vein, Dauphin recommended “continued reforms to strengthen the competitiveness of the economy through further improving the business climate, fostering greater access to credit for households and small and medium-sized enterprises, improving governance and transparency, and investing in infrastructure and education.