KEY ISSUES Context: Despite an unfavorable external and domestic environment, economic performance improved in 2013 after a difficult 2012. The European crisis led to a deceleration of activity in the nonprimary sector, but GDP growth is expected to reach about 4.5 percent owing to a bumper...

EXECUTIVE SUMMARY The Executive Board approved in August 2012 a two-year precautionary and liquidity line (PLL) arrangement in the amount of SDR 4.1 billion (700 percent of quota). The PLL provides insurance against external risks while supporting the authorities’ program aimed at reducing...

This paper discusses Morocco’s First Review Under the Arrangement Under the Precautionary and Liquidity Line (PLL). Significant progress was made in implementing the reform agenda. The program remains broadly on track, and Morocco continues to meet the qualification criteria for a PLL. The...

This 2014 Article IV Consultation highlights that Morocco has made important strides in maintaining macroeconomic stability in a difficult environment, but challenges remain to reduce fiscal and external vulnerabilities, strengthen growth, create jobs, and tackle poverty. Growth slowed in 2014...

This Selected Issues paper presents an overview of the cross-border expansion of Moroccan banks in sub-Saharan Africa (SSA). It discusses policies to minimize possible negative spillovers and address the main supervisory challenges. It builds on the analysis and main results of a Pan-African...

Macroeconomic conditions deteriorated in 2012. Growth slowed to 2.7 percent from 5 percent in 2011. Both the external and fiscal deficits widened significantly, to 10 percent and 7.6 percent of GDP, respectively. The 2012 fiscal outcome entailed a significant slippage from the authorities’...

Morocco has made substantial progress in increasing inclusive growth over the past decade, but additional efforts in terms of growth-enhancing structural reforms are needed. Preserving economic efficiency and fostering growth while strengthening inclusiveness remains a priority. This paper...

Morocco’s sound economic performance has been challenged by domestic and external shocks. The Precautionary and Liquidity Line (PLL) program is on track, and its design remains adequate. The fiscal consolidation and efforts to rebuild buffers and address medium-term challenges taken up by the...

While agricultural output suffers from yet another drought, non-agricultural output has remained robust, and domestic demand is strengthening. Nonetheless, unemployment has increased. Inflationary pressures have abated, allowing BAM to cut the policy rate in June 2024. The fiscal deficit is on...

The Moroccan economy once again showed resilience to negative shocks in 2023, as economic activity accelerated, inflation slowed, and the current account deficit narrowed despite headwinds from water scarcity (which caused a severe loss of jobs in the agricultural sector), the September 2023...