IMF Says Morocco’s Economic Growth to Reach 3% in 2016

Miami – A team of experts from the International Monetary Fund (IMF) have re-evaluated Morocco’s economy, lowering its previous growth forecast for 2016, from 3.7 percent down to 3 percent.

This new figure comes a month after the IMF revealed its “Global Outlook” report for 2016, in which Morocco had been given a 3.7 percent forecast growth.

However, IMF’s economists led by Nicolas Blancher visited Morocco from October 21 to November 4 as part of a re-evaluation mission, after which they decided to conservatively lower the figure to 3 percent.

The “growth should slow to 3 percent in 2016, due to the return of agricultural activity to normal levels, and should gradually accelerate to average term to approach 5 percent,” IMF officials said as quoted in a press release on November 4.

The slim recovery in non-agricultural activities due to a slower than expected economic recovery in Europe, as well as low inflation and moderate credit, are major causes for the IMF’s recent determination.

“The risks of slower growth in advanced and emerging countries, higher world energy prices due to geopolitical tensions in the region, and increased volatility in global financial markets remain important,” the economists added.

The IMF supported the Moroccan government’s macroeconomic policy of budget deficit reduction including the “reform of fuel subsidiaries” as well as declines in “poverty, unemployment and inequality” over the last decade.

The Fund’s experts informed that Morocco’s fiscal developments through September are in line with the target of 4.3 percent of GDP set for 2015.

“The mission commends the continued efforts in strengthening public finances, as reflected in the draft Finance Act 2016, which seeks a reduction of the budget deficit to 3.5 percent of GDP,” the fund said.

As part of Morocco’s economic study, the IMF recommended for greater economic growth to “reduce social and regional disparities, continue to increase the female participation rate, and improve the quality of education and health coverage”