IMF highlights resilience of Moroccan economy against external shocks

The IMF welcomed the resilience of the Moroccan economy in 2023 despite external shocks and drought, noting that growth should improve to 3.5% in the medium term.

“Economic growth has strengthened in 2023 thanks to the recovery in domestic demand and buoyant exports,” the IMF said in a statement the end of its Article IV consultations.

The IMF expects inflation to further drop and backs the monetary policy pursued by the central bank.

“Staff welcomes the authorities’ commitment to fiscal consolidation over the medium term,” it said, adding that “the generalization of social protection under the application of the Unified Social Registry promises to better target social support to those families who really need it.”

The IMF called for continuing the tax system reform to reduce the budget deficit.

It also stressed the need for a reform of state-owned enterprises in order to boost job creation.

Reforming the unemployment insurance scheme and improving active labor market policies could help boost job creation in the short run, it said, noting that further efforts are needed to improve female labor force participation, which is at historical lows.

“The ambitious reforms of the health care sector and education system promise to improve access and quality of services and enhance capital accumulation in the long run,” it said.