Morocco’s central bank said that risks to the country’s macroeconomic stability remain “generally moderate,” despite increasingly unfavorable conditions both domestically and internationally.
Rabat – Despite slowed economic growth and a widening fiscal deficit, the central bank of Morocco — Bank al-Maghrib — has announced that the country’s macroeconomic conditions are likely to remain relatively stable. The bank has also declared that risks to these conditions remain at a “generally moderate” level overall.
According to the bank, his year, national growth deteriorated to 3% and is expected to continue in its decline until reaching 2.8% in 2019. Afterwards, however, national growth is anticipated to recover and increase to 4% in 2020.
Meanwhile, Bank al-Maghrib has reported that the country’s deficit has increased slightly to 3.7% and will likely reach 4.1% in 2019 before falling back down to 3.8% in 2020.
The report also emphasized the resilience of Morocco’s banking and financial sectors, stating that the two have continued to maintain exceedingly profitable and stable, despite increasingly unstable conditions within the sectors.
The insurance sector and stock markets have also seen noticeable improvement; however, the latter has only begun to stabilize following an exceptionally poor year in 2018.
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Given the volatility of international trade in the current climate, Bank al-Maghrib has also discussed a number of improvements to the country’s macroeconomic systems in order to ensure stability and growth in the future.
After reviewing the financial sector’s implementation of recommendations from the Middle East and North Africa Financial Action Task Force (GAFIMOAN), Bank al-Maghrib concluded that the international situation remains unfavorable amid rising tensions and market volatility.
However, Bank al-Maghrib maintained that Morocco’s position in this international situation, as well as its position domestically, will remain relatively secure and stable for the foreseeable future.