Rabat - The International Monetary Fund (IMF) is optimistic about the Moroccan economy, saying its economic growth will pick up.
Rabat – The International Monetary Fund (IMF) is optimistic about the Moroccan economy, saying its economic growth will pick up.
Boosted by improvements in the European economy, lower oil prices, and some progress in public policy, “IMF expects the Moroccan economy to pick up significantly,” the organization said in its Friday report.
“In Morocco, growth is expected to be close to 5 percent in 2015,” the IMF predicted, adding, “In the first quarter of 2015, growth rose to 4.1 percent year-on-year, boosted by a strong agricultural output and a gradual acceleration of activity in other sectors.”
According to the report, “the rest of Arab Countries in Transition (ACTs) have had diverging trajectories over the past year and face an “uncertain outlook,” suffering from intensifying and spreading conflicts that cause widespread human suffering and sizeable economic challenges.
The report projected inflation in Morocco to remain low, at about 1.5 percent, in 2015.
Despite the relatively significant growth in Morocco over the past three decades, the report criticized soaring unemployment rates, especially among youth and women.
“The employment and labor force participation rates have not increased substantially and remain low compared to other emerging markets,” the report said.
“While the unemployment rate declined from more than 13 percent in 2000 to 8.7 percent in June 2015, it remains relatively high and is particularly elevated amongst the youth (20.5 percent), notably in urban areas (38.6 percent),” the IMF said.
To keep significant improvement in the national economy, the report said that the authorities aim to take advantage of recent gains while ensuring continued macroeconomic stability “by increasing fiscal and external buffers while moving ahead with reforms to boost competitiveness, growth and employment.”