The IMF concluded its 2025 Article IV Consultation with Morocco, approving a SDR 375 million disbursement under the RSF. The Moroccan economy is projected to show resilience with GDP growth slowing to 3.2 percent in 2024 due to strong domestic demand, while continued reforms and investments aim to enhance job creation and address climate resilience.
The International Monetary Fund (IMF) has concluded its 2025 Article IV Consultation with Morocco, granting approval for the Third Review under the Resilience and Sustainability Facility (RSF). This review facilitates an immediate disbursement of SDR 375 million, equating to approximately US$ 496 million, thereby increasing the total disbursement under the RSF to around US$ 1.24 billion.
Despite enduring another year of drought, Morocco’s economy exhibited resilience with projected real GDP growth slowing slightly to 3.2 percent in 2024, bolstered by strong domestic demand. Over the medium term, GDP growth is anticipated to rise to 3.7 percent due to intensified investment and ongoing structural reforms aimed at enhancing market competition and job creation.
Inflation has continued to decelerate into 2024, influenced by a reduction in supply shocks. Consequently, Bank Al-Maghrib reduced the policy rate in June and December, allowing the Moroccan dirham to remain stable within fluctuation bands. Additionally, the central government fiscal deficit improved, closing at 4.1 percent of GDP, benefiting from better-than-expected tax revenues.
The implementation of structural reforms is progressing, including efforts to restructure state-owned enterprises and operationalize the Mohammed VI Investment Fund. Furthermore, Morocco is advancing on climate resilience under the RSF arrangement, which includes protecting water resources, enhancing regulations for renewables, and reinforcing fiscal systems against climate risks.
Mr. Kenji Okamura, Deputy Managing Director and Acting Chair of the IMF, remarked on Morocco’s resilience, stating that despite the adverse impacts of drought, the economy maintained moderate growth, supported by robust domestic demand and an ongoing reform agenda.
In summary, the IMF has affirmed Morocco’s economic resilience through the Article IV Consultation and RSF review, facilitating significant financial disbursements while acknowledging the economic challenges posed by drought. Continued domestic demand and the commitment to structural reforms are vital for enhancing growth and addressing unemployment. Moreover, Morocco’s efforts in climate resilience suggest a proactive approach to long-term sustainability.
Original Source: www.miragenews.com
