Standard & Poor’s Affirms Morocco’s BBB- Credit Rating, Forecasts 2.8% GDP Growth

"We expect Morocco’s real GDP growth to be around 2.8% this year, slowed by the decline in external demand and agricultural production. It should rebound to around 4.0% by 2021," the Standard & Poors note indicates.

According to the Agency, the country’s budgetary situation should gradually improve, thanks to the Government’s overall budgetary strategy and the results of privatization during the forecast period, to reach 3% of GDP in 2022.

Similarly, it believes that the precautionary and liquidity line, approved by the International Monetary Fund (IMF) in December 2018, underpins Morocco’s macrofinancial stability and its economic and fiscal policy objectives.

Consequently, the rating agency revises the outlook on the country to remain negative and affirms its "BBB- / A-3" rating on Morocco.

"The outlook is stable, reconciling our forecasts of further fiscal consolidation and a gradual improvement in the current account position over the next two years against risks to economic growth from internal structural weaknesses or external shocks, such as the slowdown in world trade," S&P argues.