Standard and Poor’s agency has affirmed Morocco’s long- and short-term sovereign credit ratings at ‘BBB-/A-3’ with stable outlook despite uncertainties over the Middle East war and its impact on commodity prices, supply chains, economies, and credit conditions.
Morocco has solid buffers that will help it navigate current headwinds, including potential adverse economic impacts and related fiscal pressure, said the global rating agency in its latest report on the economic performance of the North African Kingdom.
The country’s economic growth in 2025 outperformed expectations and remained robust, said S&P, noting that recent rainfall has replenished water reserves, providing a boost to the agricultural sector besides a significant growth anticipated in tourism this year.
The experts of the international rating agency expect Morocco to maintain solid economic growth, supported by reform momentum. They expect the country’s GDP growth to average 4.4% over 2026-2029, following a stronger-than-expected outturn last year.
After several years of drought that severely weighed on agricultural output, recent rainfall has replenished water reserves–reaching 72% as of March 21 against only 36.6% a year earlier. This will support a rebound in agricultural production over the next two-to-three years.
More broadly, sound macroeconomic policies have strengthened the Morocco’s economy’s resilience to shocks in recent years. Strong export performance, notably in tourism, alongside rising foreign direct investment (FDI) has supported the accumulation of foreign exchange (FX) reserves.
Furthermore, ongoing fiscal reforms are underpinning higher government revenues, thereby supporting the authority’s capacity to navigate current headwinds, said S&P, affirming that the substantial investments injected in desalination plants will support more stable water supplies, agricultural yields, economic growth.
