The IMF Board of Directors has approved the disbursement of the third tranche under the Resilience and Sustainability Facility for Morocco, amounting to approximately $496 million.
Despite another year of drought, Morocco’s economy has continued to demonstrate resilience, according to a statement issued by the IMF in Washington on Tuesday.
The country’s growth is expected to accelerate in the medium term, driven by increased investment and ongoing structural reforms.
The new financing brings the total disbursement under the program to approximately $1.24 billion. IMF Deputy Managing Director and Acting President, Kenji Okamura, highlighted that Morocco’s economy “has continued to demonstrate resilience in the face of negative shocks, reflecting the strength of the country’s economic policies and frameworks.”
While growth slowed slightly to 3.2% in 2024 from 3.4% in 2023 due to the drought, strong domestic demand helped limit the slowdown. The IMF forecasts that GDP growth will rise to around 3.7% in the coming years, driven by a new cycle of infrastructure projects and continued structural reforms. These reforms are vital to strengthening growth, creating jobs, and making the economy more inclusive, the IMF noted.
The current account deficit widened slightly, and unemployment remained high at about 13%, mainly due to job losses in the agricultural sector. Inflation slowed further in 2024, prompting Bank Al-Maghrib to reduce its key interest rate twice. The dirham continued to fluctuate within a ±5% margin.
The fiscal deficit improved beyond expectations, standing at 4.1% of GDP, driven by higher-than-expected tax revenues. Structural reforms continued, including restructuring public enterprises and operationalizing the Mohammed VI Investment Fund.
The IMF also noted Morocco’s progress in enhancing resilience to climate change, with measures to protect groundwater, improve the electricity market, and boost renewable energy production.
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