IMF revises upwards Morocco’s growth forecast to 1.25% in 2022 and 3% in 2023

The IMF revised upwards its growth projections for the Moroccan economy to 1.25% in 2022 and 3% in 2023, saying Morocco’s resilient exports, robust remittances and tourism recovery had helped offset some of the fallout of external shocks.

The Moroccan government however expects growth to stand at 1.5% this year before increasing to 4% next year provided Morocco reaps an average harvest.

The Moroccan economy had grown 7.9% but a severe drought and the repercussions of the war in Ukraine on commodity and energy prices ditched growth prospects this year and cast a shadow of uncertainty on the economy in general.

“While we expect inflation to start falling next year, driven by the projected decrease in global commodity prices, ensuring a return of inflation to close to 2 percent by 2024 will likely require further increases in policy rates, to further anchor inflation expectations,” said the IMF following the conclusion of its Article VI consultations.

Morocco’s central bank has halted its monetary easing policy increasing its key borrowing rate by 50 basis points to 2%, in a move to contain inflation.

The IMF commended Morocco’s steps to expand social protection and launch targeted subsidies through the implementation of the social register.