Moroccan economic growth is forecast to reach 6.3% in 2021, one of the highest rates in the region, before slowing to 3% next year, according to the International Monetary Fund.
According to the IMF’s Roberto Cardarelli, who spoke after a meeting with Moroccan officials, this growth is thanks to the “successful (COVID-19) vaccination campaign” and “continued fiscal and monetary stimulus, the rebound of exports, and the exceptional harvest after two years of drought.”
Morocco’s economy shrank by 6.3% last year as a result of the pandemic and drought.
“Recent inflationary pressures have remained manageable and are expected to wane in the medium term, as cost pressures from global supply disruptions are reabsorbed,” Cardarelli said.
Morocco is emerging from the pandemic with a much stronger international reserve position after a current account deficit close to its pre-pandemic level of 3.5% of GDP.
The amount of remittances from Moroccans abroad reached a record 80 billion dirhams ($8.6 billion) in the first 10 months of 2021, offsetting weakness in tourism revenue.
According to official figures, the country’s foreign exchange reserves are sufficient to cover seven months’ worth of imports.
To rebuild fiscal buffers and boost resilience against future negative shocks, Cardarelli urged Morocco to increase its debt-to-GDP ratio and reduce its fiscal deficit over the medium-term.
According to him, the IMF welcomed Morocco’s accommodative monetary policy, advised the country’s central bank to ensure that banks “continue provisioning against impaired loans, and recommended fast-tracking the development of a distressed debt market.
