Morocco reports positive 2023 budget execution despite challenges

Morocco’s 2023 budget execution delivered positive results despite complex international and domestic challenges, Budget Minister Fouzi Lekjaa told Parliament’s Public Finance Control Committee Tuesday while presenting settlement law project 07.25.

The global economy showed resilience with inflation declining to 6.6% from 8.6% in 2022, though growth slowed to 3.3% due to persistent crises and escalating geopolitical tensions affecting commodity prices, particularly energy and food, Lekjaa explained.

Domestically, Morocco’s economy demonstrated renewed adaptability to international complexities while confronting drought, water stress, and the Al Haouz earthquake aftermath. Under King Mohammed VI’s guidance, the government implemented proactive measures preserving citizens’ purchasing power and supporting earthquake-affected families through emergency aid and reconstruction programs.

Economic growth improved to 3.4% from 1.5% in 2022, driven by 3.5% increase in non-agricultural value-added activities and modest 1.4% agricultural recovery. The trade deficit narrowed thanks to strong export performance and reduced energy bills, reinforced by robust tourism receipts and continued remittances from Moroccans abroad.

Foreign reserves increased 6.4% to nearly 359 billion dirhams, covering 5 months and 15 days of imports. Improved revenue collection and rigorous expenditure monitoring limited the budget deficit to 4.4%, below the 4.5% target and 5.4% recorded in 2022, contributing to debt-to-GDP ratio reduction by two points to 69.5%.

These positive results maintained Morocco’s credit rating with Standard & Poor’s confirming a “stable” outlook. Morocco also successfully exited the Financial Action Task Force and European Union grey lists in 2023.

Total engaged expenditures reached 532.9 billion dirhams while collected revenues totaled 485.2 billion dirhams, achieving 114.5% realization rate.