The International Monetary Fund (IMF) said that structural reforms in Morocco will offset the effects of “Covid-19” and the Russian-Ukrainian war, expecting the average growth of the Moroccan economy to reach 3.2% in 5 years, while it will grow by about 3% in 2023, compared to 1.2% recorded during the past year.
The fund's expectations fell short of the government's target of 4% in the 2023 budget, in which it relied on the performance of the agricultural sector, which contributes 14% to the local economy.
As for inflation, the Fund expected its decline to 4% in 2023, compared to about 6.5% in 2022, after reaching its peak at 8.3%, the highest level in decades during September and November.
As for interest rates, the report supported an additional rise in the main interest rate in Morocco to curb inflation, welcoming the monetary policy tightening adopted by the Central Bank over the past year, which raised the interest rate twice to 2.5%.
The report stated that Morocco's budget for 2023 balances needs to reduce the deficit, mitigate the social and economic impact of shocks, and finance structural reforms, which the Fund praised.
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