Rabat - According to a report conducted by the IMF “Arab Countries in Transition: Economic perspectives and key challenges,” Morocco’s GDP will reach a growth level of 5 % this year, supported by an exceptional cereal production and gradual acceleration of growth in other sectors.
The Moroccan economy remains, however, unsecured against risks on the average level, underlined the IFM.
Macroeconomic indicators will continue to improve and results are positively featured. Yet the slow growth registered by developed countries who are key trade partners of Morocco, might lead to a lower level of exports, of direct foreign investments, and remittances of Moroccans living abroad which may potentially slow the growth rate in the country, the IMF highlighted.
The IMF highlighted that the new oil price rise might have an impact on the current conjuncture. A rising but volatile trend in the international financial markets may directly or indirectly affect the current and budgetary accounts, not to mention that the expected 2016 legislative elections might delay reforms in an unstable regional environment.
With regard to its predictions for 2016, the IMF said that Morocco would witness a slow growth rate at 3.7%. This is explained by the fact that cereal production rates will return to normal.
The IMF has also stressed the need for speeding up structural reforms for an inclusive growth to reduce unemployment rates. According to the same report, even though unemployment stood at 8.7% as of June 2015, it remains high among the youth reaching 20.5 per cent in urbans areas.
Around 1.7 million people have been lifted out of poverty and its rate diminished by 40% thanks to strong economic growth. Yet unequal access to health services and gender inequality remains high, said the IMF.
“In the coming years, the authorities have to further speed up their structural reforms including steps to improve competitiveness, reach a higher growth rate, reduce unemployment, improve business climate and access to finance” recommends the IMF.
The IMF expects an improved budget balance at -5.7% of GDP in 2015 and -4.5% in 2016. The current account deficit will be brought to -3.7% of GDP this year and -2.4% next year. The inflation will continue to stand at 2%.
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