Morocco: 2025 Article IV Consultation and Third Review Under the Arrangement Under the Resilience and Sustainability Facility-Press Release; Staff Report; and Statement by the Executive Director for Morocco

International Monetary Fund

No 2025/087, IMF Staff Country Reports from International Monetary Fund

Abstract: This paper focuses Morocco’s 2025 Article IV Consultation and Third Review under the Arrangement under the Resilience and Sustainability Facility. The Moroccan economy continued to show resilience despite another year of drought, with real gross domestic product growth projected to slow modestly to 3.2 percent in 2024 amid strong domestic demand. Growth is expected to accelerate over the medium term, driven by stronger investment and the continued structural reforms. The effect of stronger demand on the current account deficit has been muted by continued positive trends in tourism, remittances, and manufacturing exports. The gradual fiscal consolidation continued as expected, and the 2025 Budget reiterated the authorities’ commitment to reduce the government debt ratio over the medium term. Saving part of the revenue windfall from tax reforms would help strengthen fiscal buffers and protect against future shocks; while a new strategy to sustainably boost jobs and improve market competition would help address the increased unemployment linked to job displacement in the agricultural sector.

Keywords: RSF arrangement; dirham exchange rate; exchange rate system; E. WB engagement; performance program; Climate change; Agricultural sector; Fiscal law; Structural reforms; Maghreb; Global; Middle East and Central Asia (search for similar items in EconPapers)
Pages: 103
Date: 2025-04-07
New Economics Papers: this item is included in nep-ara and nep-inv
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