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Financial Outlook

The economy improved in 2013 despite the unfavorable regional and global economic context, according to an IMF report published in December 2013. The organization said that the economy expanded by 5% owing to a bumper cereal crop. The external current account deficit declined significantly and reserves remained stable at about four months of imports, helped by strong foreign direct investments. Public debt remains sustainable, and the fiscal deficit is declining on the back of government measures. The organization also forecast that the economy could expand by 4% in 2014 assuming that cereal output returns to average levels. The government is targeting a fiscal deficit of 4.9% of GDP in 2014, with a further narrowing to 3.5% by 2016. The government estimates inflation in 2013 to have been 2% and predicts that it will remain at similar levels in 2014. In September 2013 the authorities raised energy prices as part of a reform of subsidies required by the IMF. In 2012 the government agreed to changes that include deregulation of the prices of many staple goods and reform of the pension and the taxation systems in return for a two-year, US$6.2 billion precautionary credit line from the IMF.

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Further reading on Morocco

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