Rabat – The International Monetary Fund (IMF) has called on Morocco to accelerate the implementation of key reforms to boost economic growth and ensure fiscal stability.
In a recent visit to Morocco, IMF staff led by Roberto Cardarelli presented a list of recommendations to the country. The recommendations cover a number of areas such as fiscal consolidation, monetary policy, and structural reforms aimed at fostering inclusive growth.
During the meeting, the IMF applauded Morocco’s commitment to fiscal consolidation over the medium term while emphasizing the necessity of accelerating the process.
Fiscal consolidation refers to the process by which a government takes measures to reduce its budget deficit and stabilize its debt levels relative to its gross domestic product (GDP).
IMF representatives called for completing the reform of the tax system, including VAT, and improving tax administration to enhance revenue generation.
The recommendations also included calls for the government to cut spending, particularly in state-owned enterprises, and expand the scope of social programs through the Unified Social Registry.
Regarding inflation, the IMF expressed support for the Moroccan central bank’s current monetary policy stance. The institution further advised that any future adjustments to monetary policy should be based on data-driven analysis.
“The current monetary policy stance is appropriate, in light of the falling inflation and future changes to the monetary policy stance should remain data dependent,” an IMF statement reads.
IMF economists stressed the need for Morocco’s efforts to address water scarcity and promote renewable energy production as a catalyst for sustainable development.
According to the statement, the IMF notably encourages the Moroccan government to prioritize initiatives such as the Mohammed VI Fund and the Charter of Investment to stimulate private investment and combat corruption.
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