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...

Climate change is both a major threat and a source of opportunities for Morocco's development. On one hand, Morocco is one of the world's most water-stressed countries, and water scarcity is a serious constraint to the country's ambition to transition to a new model of development. The...

This paper presents Morocco's Request for an Arrangement under the Flexible Credit Line (FCL). Morocco qualifies for the FCL by virtue of its very strong policies, institutional policy frameworks, and economic fundamentals and continued commitment to maintaining such policies in the future....

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...

This 2022 Article IV Consultation discusses that the drought and economic fallout from Russia's war in Ukraine took a toll on Morocco's economy in 2022, despite the authorities' very strong policy response. Despite the increase in current spending from higher subsidies and other policy measures...

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...