Rabat - The International Monetary Fund, or IMF, is optimistic about the performance of the Moroccan economy.
Rabat – The International Monetary Fund, or IMF, is optimistic about the performance of the Moroccan economy.
A staff team from the fund visited Morocco from May 28 to June 5, 2015 to conduct discussions with the authorities, and the conclusions reached were reassuring.
According to the IMF, the Moroccan economy is recovering and macroeconomic prospects are favorable but remain subject to important external risks.
“After slowing in 2014, growth is expected around 5 percent in 2015, bolstered by a good agricultural output and a gradual acceleration of activity in other sectors,” says the IMF’s preliminary findings.
The IMF added that Morocco’s external position has improved, benefiting from lower oil prices and the strong performance of exports from newly developed industries.
The external current account deficit narrowed to 5.6 per cent of GDP in 2014 and is expected to further decrease to around 3 per cent of GDP in 2015.
International reserves have continued to strengthen. The fiscal deficit has further contracted, owing in particular to measures taken by the government to reduce public expenditures.
The country’s public debt rose, but, at about 65 per cent of GDP, remains sustainable. Inflation remains low at about 1.5 per cent year-on-year. However, significant efforts remain to be made to reduce unemployment, particularly among the youth, says the IMF.
Over the medium term, growth should continue to accelerate, subject to an improvement in external conditions and the implementation of reforms.
“Significant progress was made in reforming the subsidy system, thereby reducing its costs and associated fiscal risks. In the same way, timely implementation of the pension reform is needed to ensure the viability of the system while extending its coverage,” according to the Fund’s statement issued by Jean-François Dauphin.