The International Monetary Fund (IMF) projects Morocco’s economic growth to accelerate to 3.9% in 2025, up from 3.2% in 2024.
This forecast was announced by Roberto Cardarelli, IMF mission chief in Morocco, following consultations conducted from January 27 to February 7 under Article IV.
According to the IMF, this growth will be driven by a rebound in agricultural production, following recent droughts, and sustained growth in the non-agricultural sector, fueled by strong domestic demand.
The IMF anticipates a moderate widening of the current account deficit to around 3%, in line with structural norms, following historically low levels. Inflation is projected to remain around 2%.
While acknowledging the positive outlook, the IMF highlighted several risks, including the impact of global geopolitical tensions and the effects of climate change.
Regarding monetary policy, the IMF supports Bank Al-Maghrib’s current “broadly neutral” stance, given well-anchored inflation expectations and the absence of excessive demand pressures.
On the fiscal front, the IMF commended recent tax reforms that have broadened the tax base while reducing the tax burden. The Fund recommended allocating any surplus revenues towards reducing public debt and encouraged further efforts to broaden the tax base and rationalize public spending, particularly by reducing transfers to public enterprises.
The IMF also emphasized the importance of expanding the use of the unified social registry to target social spending effectively and supported the ongoing reform of the organic law on the finance law.
To further boost the private sector, the IMF recommended strengthening support for SMEs, developing regional investment centers, and revising the labor code, tax system, and regulatory frameworks.
The IMF mission held consultations with government officials, Bank Al-Maghrib, and stakeholders from the public and private sectors to gain a comprehensive understanding of the Moroccan economy and identify key challenges and opportunities.
MK/ac/Sf/fss/abj/APA