- 16:50International U19 Tournament 2025: Top Junior Clubs to Compete at Mohammed VI Academy
- 16:12U.S. issues travel warning amid concerns of imminent attacks in Syria
- 15:43Unveiling prehistory: researchers rediscover humanity in Casablanca
- 15:12OCP Green Water secures 6 billion dirhams to enhance sustainable water strategy
- 14:35Rima Hassan’s controversial stance on Morocco: A political maneuver or genuine advocacy?
- 12:50Aer Lingus expands connectivity with new Cork to Bilbao route
- 12:20Siel 2025: Celebrating culture and literary legacy in rabat
- 11:50Morocco's citrus fruits make a splash in Japan's market
- 11:20OCP Green Water secures MAD 6 billion for desalination expansion and water security
Follow us on Facebook
IMF recommends inflation targeting for Morocco amid strong growth outlook
Morocco's economy is poised for robust growth of 3.9% in 2025, building on its 3.2% expansion in 2024, as the International Monetary Fund advises the nation's central bank to implement an inflation-targeting framework and enhance debt reduction initiatives.
The country has demonstrated remarkable success in controlling inflation, which dropped from 6.1% in 2023 to 0.9% in 2024. In light of this achievement, the IMF's Article IV consultation mission, conducted from January 27 to February 7, recommends that Bank Al-Maghrib maintain its course toward adopting an inflation-targeting framework.
Roberto Cardarelli, who headed the IMF mission, endorsed the current neutral monetary policy stance while emphasizing that future rate adjustments should be guided by economic data. The central bank projects inflation to reach 2.4% in 2025.
Morocco's fiscal performance has shown improvement, with tax reforms yielding better-than-expected revenue and reducing the fiscal deficit to 4.1% of GDP in 2024, surpassing the original 4.3% target set in the 2024 Budget. However, the IMF stressed the importance of further fiscal consolidation, recommending that surplus revenues be directed toward accelerating debt reduction to pre-pandemic levels.
The economic landscape faces certain challenges, particularly in employment, where the unemployment rate increased to 13.3% in 2024 from 13% the previous year. The IMF specifically highlighted the need to address labor displacement from the agricultural sector caused by recurring droughts.
The Fund praised Morocco's progress in operationalizing the Mohammed VI Investment Fund to improve SMEs' access to equity financing. It also supported the ongoing reform of the Organic Budget Law, which aims to establish a new fiscal rule based on a medium-term debt target.
While the IMF assessment indicates that risks to Morocco's economy are "broadly balanced," it acknowledges persistent uncertainty regarding geopolitical tensions and climate conditions. The current account deficit is expected to widen to approximately 3% as growth accelerates, while the non-agricultural sector maintains strong expansion driven by robust domestic demand.
Comments (0)