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Accelerating Morocco's Reform Agenda: A Catalyst for Economic Growth

Accelerating Morocco's Reform Agenda: A Catalyst for Economic Growth
Saturday 24 February 2024 - 12:00
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The International Monetary Fund (IMF) has urged Morocco to expedite the implementation of its structural reform program to bolster economic growth and ensure sustained fiscal stability.

During a recent mission to Rabat, IMF officials, led by Deputy Director Roberto Cardarelli, acknowledged Morocco's commitment to prudent fiscal management but emphasized the need for more immediate action.

The recommendations primarily focus on expediting efforts across key policy areas. Regarding fiscal reforms, Morocco is advised to modernize its tax system, particularly the value-added tax, and improve revenue collection through enhanced administrative practices. Additionally, there's a pressing need for spending discipline, especially in state-owned enterprises that are draining public funds. Furthermore, enhancing the Ummed social program could extend its benefits to more vulnerable citizens.

In terms of monetary policy, the IMF supports the current measures undertaken by Bank Al-Maghrib to manage inflation. Any adjustments should be responsive to economic data to ensure agility.

Structural reforms offer significant growth opportunities. Addressing chronic water scarcity through initiatives like the national irrigation strategy could amplify agricultural productivity. Similarly, expanding renewable energy sources aligns with green development objectives.

Investment plays a pivotal role in economic vitality. IMF analysts underscore Mohammed VI's innovative investment fund and Charter for Investment as potential catalysts for job creation, contingent upon effective measures to combat corruption.

While Morocco's reform agenda demonstrates prudence, achieving its prosperity objectives necessitates urgent and comprehensive execution across all policy domains.


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