IMF Projects Morocco’s Economic Growth at 2.8% for 2019 Amid Agricultural Challenges

After conducting a mission in the Kingdom from October 29 to November 7, 2019, Nicolas Blancher, head of the IMF team, said that Morocco’s economic growth could reach 2.8% in 2019 due to a contraction in agricultural production and a moderate recovery in non-agricultural activity.

For Blancher, overall, economic policy is sound and Morocco’s economic fundamentals are solid. The head of the IMF team also indicated that macroeconomic policy and results remain solid despite the volatility of cereal production, the weak growth of the country’s main trading partners and high external risks.

Inflation would slow to 0.4% and the budget deficit for 2019 should reach 4% of GDP due to a larger increase in capital expenditure than in revenue, he specified. As for the unemployment rate, it stood at 9.4% in the third quarter of 2019 and the activity rate at 44.9%.

"The Moroccan authorities remain determined to implement major reforms on the fiscal, financial and structural fronts, which should strengthen the economy’s resilience to external shocks and foster higher and more inclusive growth," the IMF welcomed.