The International Monetary Fund (IMF) has approved the disbursement of a third tranche of funding under its Resilience and Sustainability Facility (RSF) to Morocco, providing approximately $496 million to support the nation’s efforts to combat the ongoing drought.
This latest approval brings the total IMF allocation to Morocco under the RSF program to nearly $1.24 billion.
The IMF’s decision, announced Tuesday in Washington, reflects confidence in Morocco’s economic resilience despite the persistent challenges posed by drought. According to the IMF, the Moroccan economy maintained a robust trajectory in 2024, despite the adverse effects of another dry year.
Morocco’s economic growth slowed slightly to 3.2 percent in 2024, compared to 3.4 percent in 2023, primarily driven by domestic demand. The IMF projects growth to accelerate to 3.7 percent in the coming years, bolstered by infrastructure investments and ongoing structural reforms.
Positive economic indicators include a decline in inflation, enabling Bank Al-Maghrib to reduce its key interest rate twice in 2024. The budget deficit also remained lower than anticipated, at 4.1 percent of GDP, due to strong tax revenue performance.
However, unemployment remains a concern, standing at 13 percent, largely attributed to job losses in the agricultural sector due to the drought.
This new IMF funding underscores the international community’s confidence in Morocco’s macroeconomic stability and its ability to navigate recurring climate shocks. The financial support aims to assist Morocco in building resilience against the long-term impacts of climate change, particularly in the face of ongoing water scarcity.
SL/ac/Sf/fss/abj/APA