Morocco’s public debt remains “sustainable with a high probability,” the International Monetary Fund’s mission chief Laura Jaramillo Mayor said, offering a strong vote of confidence in the Kingdom’s economic strategy as it ramps up large‑scale public investment.
The assessment, part of the IMF’s 2026 Article IV consultation, reflects the view that Morocco’s rising spending, on infrastructure, water security and social protection, is anchored in long‑term growth objectives rather than short‑term stimulus.
Morocco’s investment push covers expanding transport networks, scaling up desalination and irrigation projects, and rolling out universal social protection while preparing for major international events, within a context of fiscal consolidation.
According to recent official data, growth reached 4.9% in 2025, up from 4.4% a year earlier. The rebound was driven by an 8.2% expansion in agriculture, following a difficult 2024, alongside 3.9% growth in non‑agricultural activities, pointing to a more balanced recovery.
Despite the scale of spending, fiscal indicators are improving. The budget deficit narrowed to 3.5% of GDP in 2025 and is projected to decline further to 3.3% by 2028. Public debt is expected to fall from 67.1% of GDP in 2025 to 60.8% by 2031, according to the IMF.
