In a report released on October 1, S&P Global Ratings reaffirmed Morocco’s sovereign debt rating at BB+/Positive/B, while slightly lowering its forecast for real GDP growth in 2024 to 3.1%, down from a previous estimate of 3.4% in March 2024. This revision is primarily attributed to a weaker-than-expected agricultural season.
Despite Morocco’s continued dependence on rain-fed agriculture, which makes its economy vulnerable to climate fluctuations, S&P highlighted the resilience of the country’s economy. Key sectors such as tourism, phosphates, automotive, and aerospace are performing well and driving economic diversification.
Ongoing structural reforms are aimed at fostering investment, particularly in water and energy sectors, and modernizing the regulatory framework. These reforms seek to boost the share of private investment in the economy. The increase in foreign direct investment (FDI) further reflects Morocco’s growing appeal as an investment destination.
S&P anticipates a gradual reduction in Morocco’s budget deficit through the phased removal of subsidies and the implementation of fiscal reforms, including VAT reform. These measures are expected to help finance social programs and support economic growth.
In the medium term, Morocco’s economic growth is projected to accelerate, driven by dynamic sectors such as tourism, automotive, and aerospace, along with stronger domestic demand and increased investment. Major events like the 2025 Africa Cup of Nations and the 2030 FIFA World Cup, combined with infrastructure developments such as the Tanger-Med port, will also contribute to the country’s economic growth.
