Fitch Gives Morocco BBB- Rating with Stable Outlook

Fitch Gives Morocco BBB- Rating with Stable Outlook

Fitch Ratings gave Morocco ‘BBB-‘ rating with a stable outlook due to the country’s macroeconomic stability, comfortable external buffers and a low share of foreign-currency debt in public debt.

The Moroccan government has prioritized social policies in the 2019 budget, said Fitch in a press release, noting that the country is planning an overhaul of social programs as well as measures to support consumer purchasing power, spur employment and reduce regional disparities.

Fitch projects a broadly stable deficit of 3.7 pc of GDP in 2019 before narrowing slightly to 3.5 pc of GDP in 2020. GDP growth will average 3.2 pc in 2018-2020, in line with the current ‘BBB’ category median of 3.3 pc.

Following a bumper harvest in 2017, crop production has further increased during the current season due to supportive weather conditions and improved productivity.

As to activity in the non-agricultural sector, it is underpinned by continued foreign-financed investments in the automotive and aeronautic industries, steady growth in mining production and strong tourism, said Fitch.

According to Fitch forecast, foreign direct investments will average 1.7% of GDP in 2018-2020. Morocco’s two-year precautionary liquidity line (PLL) with the IMF expired in July and the government has applied for a successor arrangement with the Fund. A new precautionary arrangement would offer a safety net against risks of external stress.

CATEGORIES
Share This
The North Africa Post
Privacy Overview

This website uses cookies so that we can provide you with the best user experience possible. Cookie information is stored in your browser and performs functions such as recognising you when you return to our website and helping our team to understand which sections of the website you find most interesting and useful.