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Resilience of the Moroccan economy amid negative shocks

Resilience of the Moroccan economy amid negative shocks
Wednesday 19 - 12:39 By: Zahouani Ilham
Zoom

The Moroccan economy has demonstrated resilience in the face of negative shocks, showcasing the strength of the Kingdom's economic policies and frameworks, according to Kenji Okamura, Deputy Managing Director and Acting President of the International Monetary Fund (IMF).

In a statement issued in Washington following discussions by the IMF's Board of Governors on Morocco, Okamura highlighted that Morocco’s economy continued to withstand negative pressures, thanks to solid domestic policies. Despite a new drought, economic activity only slightly slowed, with growth expected to be around 3.2% in 2024, down from 3.4% in 2023. The IMF attributes this performance to strong domestic demand.

The IMF projects that Morocco's economic growth will accelerate in the coming years, forecasting a growth rate of approximately 3.7%. This growth is expected to be driven by a new cycle of infrastructure projects and ongoing structural reforms.

The IMF also expressed satisfaction with the progress of Morocco's Resilience and Sustainability Facility agreement, noting that six out of seven planned measures were implemented during the third and final review. These measures aim to improve the management of scarce water resources, further liberalize the electricity sector, and mitigate climate risks that could affect the country’s fiscal and financial stability.

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