The International Monetary Fund has approved the disbursement of a third tranche of financing for Morocco under the Resilience and Sustainability Facility. This latest installment, amounting to $496 million, brings the total funding granted to the country to $1.24 billion.
Despite another year of drought, Morocco’s economy continues to show resilience. The IMF highlights stable economic growth, with GDP rising by 3.2% in 2024, following a 3.4% increase in 2023. Over the medium term, growth is expected to accelerate to 3.7%, driven by infrastructure investments and ongoing structural reforms.
However, the labor market remains under strain, with unemployment at 13%, largely due to job losses in the agricultural sector. Meanwhile, the current account deficit has widened slightly, though the fiscal deficit has improved faster than anticipated, narrowing to 4.1% of GDP thanks to stronger-than-expected tax revenues.
Inflation continued to decline in 2024, prompting Bank Al-Maghrib to cut its benchmark interest rate twice, in June and December. The dirham has remained stable within its fluctuation band, reflecting a well-managed monetary environment.
Structural reforms are steadily reshaping the country’s economic landscape. Morocco has made progress in restructuring state-owned enterprises, activating the Mohammed VI Investment Fund, and implementing the new Investment Charter.
On the environmental front, efforts have been stepped up to safeguard water resources, adjust pricing policies, enhance electricity market regulations, and promote renewable energy. The government is also working to bolster fiscal and financial resilience against climate-related risks.
With this renewed support from the IMF, Morocco reaffirms its position as a resilient economy committed to reform, despite an uncertain global backdrop.
