The International Monetary Fund (IMF) reported, “The Moroccan economy once again showed resilience to negative shocks in 2023,” despite a range of challenges, according to a press release published on the IMF’s website yesterday.
In 2023, the economy in the Kingdom encountered numerous challenges, such as water scarcity, an earthquake in September, and slow growth in the Eurozone. Despite these difficulties, the economy remained resilient and showed signs of improvement. Economic activity increased, inflation slowed, and the budget deficit decreased.
The IMF commended Morocco’s progress in meeting the Resilience and Sustainability Facility (RSF) terms and ongoing water management initiatives, as well as ambitions to reach net-zero emissions by 2050.
The Washington-based institution also acknowledged Morocco’s qualification for the Flexible Credit Line (FCL), citing the nation’s robust macroeconomic policies and institutional frameworks, as well as its continuous commitment to reforms.
The IMF anticipates that Morocco’s ambitious infrastructure plan, particularly in the water and energy sectors, will stimulate investment and growth in the coming years, and its current account deficit will gradually converge towards the norm.
IMF’s board also expressed support for the monetary policy of the Bank Al-Maghrib (BAM – Central Bank), acknowledging Morocco’s progress in strengthening financial surveillance and regulatory frameworks.
Morocco’s “firm determination” to execute structural reforms, such as social protection, health, and education systems, would increase equity and quality of access while simultaneously supporting human capital in the future term, according to the IMF.