The IMF has approved a $496 million disbursement to Morocco, totaling approximately $1.24 billion under the Resilience and Sustainability Facility. Despite drought challenges, Morocco is expected to achieve economic growth of 3.7% through structural reforms and infrastructure projects, including World Cup preparations. The IMF commends the country’s resilient economic policies and ongoing climate initiatives.
The International Monetary Fund (IMF) has approved a $496 million disbursement to Morocco as part of its Resilience and Sustainability Facility arrangements. This brings the total amount provided under this arrangement to approximately $1.24 billion. The IMF noted that Morocco’s economy has shown resilience despite ongoing drought conditions affecting agricultural output.
Economic growth in Morocco is projected to accelerate in the medium term due to increased investments and the implementation of structural reforms. “Robust domestic demand helped offset weak agricultural output and economic activity is expected to have slowed only modestly to 3.2 percent in 2024,” stated the IMF, which also indicated that the current account deficit had widened.
Challenges remain for Morocco, including high unemployment rates around 13%, particularly affecting the agricultural sector. Despite a slight slowdown in GDP growth, the IMF anticipates an increase to 3.7% in the coming years, driven by infrastructure projects and a comprehensive reform agenda.
Many of these infrastructure initiatives are linked to preparations for the 2030 World Cup, including the construction of new stadiums and enhancements to roadway and railway systems. Kenji Okamura, Deputy Managing Director and Acting Chair of the IMF, praised Morocco’s resilient economy, attributing this to “very strong economic policies and frameworks.” He emphasized that even with renewed drought, economic activity is expected to slow only modestly due to robust domestic demand.
The IMF highlighted the importance of Morocco’s reforms in fostering stronger, more resilient, and inclusive growth. Furthermore, it acknowledged the country’s climate efforts under the resilience arrangements, including measures to safeguard underground water resources and improve the regulatory environment for the electricity market to enhance private sector participation in renewable energy production.
The IMF’s recent approval of $496 million for Morocco underscores the nation’s economic resilience and the effectiveness of its reform strategies. Despite ongoing challenges such as drought and unemployment, projections indicate a return to robust growth driven by infrastructure development and investment. Morocco’s commitment to climate efforts further strengthens its economic framework, enhancing long-term sustainability.
Original Source: www.moroccoworldnews.com
