IMF Projects Morocco’s Economy to Grow 4.8% in 2026

The International Monetary Fund (IMF) projected that Morocco’s economy will expand by 4.8% in 2026, following a robust 4.9% growth in 2025, fueled by strong performance in agriculture, construction, and services.

The IMF’s assessment comes after a mission to Morocco from January 29 to February 11, 2026, as part of the institution’s 2026 Article IV consultations. The team, led by Laura Charmillo, released a set of recommendations aimed at strengthening Morocco’s economic and fiscal policies.

According to the IMF, Morocco’s growth momentum is expected to continue through 2026, supported by rising public and private investment and a strong agricultural output following exceptional rainfall.

Inflation remained subdued at 0.8% in 2025 and is forecast to gradually rise to around 2% by mid-2027, driven by earlier interest rate cuts and ongoing economic expansion.

Morocco’s tax revenues reached 24.6% of GDP in 2025, reflecting recent tax reforms and improved revenue administration. The central government deficit narrowed to 3.5% of GDP, below the 2025 budget forecast of 3.8%.

The IMF team recommended partially saving any revenue gains to bolster financial reserves and reprioritizing spending to create more space for human capital investment, particularly in health and education.

The fund praised Morocco’s progress in strengthening its medium-term fiscal framework and public investment management, including steps toward adopting a new fiscal rule. It encouraged continued efforts to identify and monitor financial risks, especially those related to public institutions, and to improve transparency in fiscal reporting.

The IMF also highlighted the challenge of creating sustainable employment, calling for reforms to enhance private sector engagement and labor market responsiveness. Accelerating reforms in public institutions was stressed as a key step to improve competition and ensure a level playing field between public and private sectors, along with targeted support for small and medium-sized enterprises.