The IMF has approved a $496 million disbursement for Morocco, underscoring its economic resilience. Total funds dispersed under the Resilience and Sustainability Facility reach $1.24 billion. Though facing challenges like drought and high unemployment, growth is projected to accelerate due to investments and reforms. Infrastructure projects ahead of the 2030 World Cup are expected to further support this progress.
The International Monetary Fund (IMF) has approved a disbursement of $496 million for Morocco under the Resilience and Sustainability Facility. This marks the third tranche, bringing the total disbursed amount to approximately $1.24 billion. The IMF highlighted Morocco’s economic resilience, particularly in light of another year marked by drought conditions.
The IMF anticipates that Morocco’s economic growth will gain momentum over the medium term due to increased investment and ongoing structural reforms. Domestic demand appears to have played a significant role in counterbalancing weaker agricultural performance, with expectations for modest growth slowdown at 3.2 percent in 2024.
Challenges remain, including an elevated unemployment rate of around 13%, particularly impacting the agricultural workforce. Despite a slight decline in GDP growth, projections indicate an acceleration to 3.7% in the following years, bolstered by infrastructure projects related to Morocco’s preparations for the 2030 World Cup.
These infrastructure initiatives encompass the construction and renovation of stadiums, alongside enhancements to roadway and railway networks. Kenji Okamura, the IMF’s Deputy Managing Director, praised Morocco’s economic resilience in the face of adverse conditions, attributing this to robust economic policies and frameworks.
Okamura noted that despite renewed drought, economic activity is expected to slow only modestly, highlighting the role of domestic demand. The IMF further emphasized that Morocco’s reforms are vital for fostering stronger, more resilient, job-rich, and inclusive growth. Additionally, the IMF acknowledged Morocco’s climate initiatives aimed at protecting water resources and enhancing renewable energy production regulations.
In conclusion, the IMF’s approval of $496 million reinforces the resilience of Morocco’s economy amidst significant challenges. Expectations for improved growth, driven by investments and structural reforms, indicate a positive trajectory despite current obstacles such as unemployment and drought conditions. Continued progress in infrastructure and climate policies is crucial for sustaining this economic momentum.
Original Source: www.moroccoworldnews.com
