US credit rating agency S&P Global Ratings confirmed, on Friday, “BB+/B” ratings for Morocco, with a stable outlook.
In a report, S&P said Morocco’s ongoing economic and fiscal reforms should pave the way for higher domestic and foreign private investment, more inclusive growth, and a steady decrease in external and budget deficits.
The ratings include Morocco’s long-term and short-term foreign and local currency sovereign credit ratings.
The rating agency also projected that Morocco’s net general government debt will increase and stabilize at 65% of GDP by 2026, around 13.5 percentage points higher than pre-pandemic levels.
It also forecast a steady rise in Morocco’s GDP, by 3.5% in 2023 and 3.4% a year in 2024-2026. The GDP per capita is also expected to rise to nearly $5,000 in 2026.
The GDP surge is due to the rebound in agricultural output and robust performance by the country’s main export-oriented sectors, including tourism, phosphates, automotive, and aerospace.
“Morocco’s economic growth will benefit from the completion of additional large-scale projects, the expansion of Morocco’s export capacity, the promotion of the private sector, and the implementation of socioeconomic reform,” wrote the report.
The projections showed that inflation will become more broad-based and will decelerate gradually to 4.5% in 2023 and 2% by 2026.
The rating agency said that Morocco’s removal from the FATF gray list will enhance Moroccan banks’ ability to engage in trade finance operations with international banks, especially those in Europe.