Morocco to post MENA region’s highest growth rate in 2021 at 6.3% – IMF says

The IMF expects Morocco’s economy to grow 6.3%, the highest rates among its MENA peers, as the country continues its fiscal and monetary stimulus.

Morocco’s economic performance is also credited thanks to its “successful vaccination campaign” which enabled the country to contain the pandemic and allow the economy to rebound, the IMF said after its Article IV consultations.

“The economic recovery is expected to continue over the next few years, although the pandemic will leave some scars. GDP growth is projected at around 3 percent in 2022, as agriculture output returns to average levels and non-agricultural activity continues to recover,” the IMF said.

Morocco emerges from the pandemic with a much stronger international reserve position as it implements measures to narrow its current account deficit, it said.

“In order to rebuild fiscal buffers and increase the resilience against future negative shocks, it would be appropriate to further reduce the overall fiscal deficit and bring the debt-to-GDP ratio closer to its pre-pandemic levels over the medium term,” the IMF said.

“Staff supports the accommodative monetary stance, especially as inflationary pressures remain contained and inflation expectations well anchored,” it said.