Morocco has made significant strides in strengthening the resilience of its economy in recent years, says the International monetary Fund after completing lately its second review under the Precautionary and Liquidity Line (PLL) arrangement sealed with the North African Kingdom.
The two-year arrangement supports the efforts made by Morocco to promote higher and more inclusive growth. The $3 billion PLL arrangement, approved by the IMF’s Executive Board in 2018, will expire in 2020.
“Looking ahead, growth is expected to accelerate gradually over the medium term”, says Mr. Mitsuhiro Furusawa, IMF Deputy Managing Director, noting that the PLL arrangement continues to provide valuable insurance against external risks and support the authorities’ economic policies.
The Moroccan authorities are “committed to sustaining sound policies. The government’s economic program remains in line with key reforms agreed under the PLL arrangement, including to further reduce fiscal and external vulnerabilities, while strengthening the foundations for higher and more inclusive growth”, stresses Mr. Furusawa.
“The transition to greater exchange rate flexibility initiated last year would enhance the economy’s capacity to absorb shocks and preserve its external competitiveness”, adds the IMF official, saying that the current favorable economic environment continues to provide a window of opportunity to conduct this reform smoothly.
According to the IMF, the reforms of education, governance, and the labor market will help reduce disparities and contribute to more private sector-led growth and job creation, especially among the youth.