IMF Approves $496 Million Disbursement to Support Morocco’s Economic Resilience

The IMF has granted Morocco $496 million, bringing total disbursements to $1.24 billion under the Resilience and Sustainability Facility. Despite challenges like drought, projected economic growth is set to rise due to investments and reforms, with GDP expected to increase to 3.7% in the coming years. The country is preparing for the 2030 World Cup with significant infrastructure investments.

The International Monetary Fund (IMF) has approved a disbursement of $496 million to Morocco as part of the Resilience and Sustainability Facility arrangement. This allocation raises the total disbursement to approximately $1.24 billion, demonstrating Morocco’s economic resilience despite ongoing drought challenges. The IMF also highlighted expectations for accelerated economic growth in the medium term, driven by enhanced investments and structural reforms.

According to the IMF, Morocco’s robust domestic demand has offset the adverse effects of weak agricultural output. Economic activity is projected to exhibit a slight slowdown to 3.2 percent in 2024. Furthermore, the current account deficit has expanded, indicating ongoing economic pressures alongside a high unemployment rate of about 13%, particularly impacting the agricultural sector.

While acknowledging a modest deceleration in Morocco’s GDP growth, the IMF anticipates an increase to 3.7% in the coming years, primarily fueled by infrastructure projects associated with the preparation for the 2030 World Cup. These projects encompass the construction of new stadiums, renovation of existing facilities, and significant improvements to roadway and railway systems.

Kenji Okamura, Deputy Managing Director and Acting Chair of the IMF, expressed commendation for Morocco’s resilient economy, attributing its stability to effective economic policies. He noted, “Despite renewed drought conditions, economic activity slowed only modestly, supported by robust domestic demand.”

The IMF stressed the importance of ongoing reforms in Morocco, emphasizing their role in fostering more resilient and inclusive growth that generates jobs. The organization also acknowledged Morocco’s initiatives to address climate change, focusing on measures to protect underground water resources and enhance regulations for the electricity market, thus promoting private sector involvement in renewable energy production.

In conclusion, the IMF’s approval of $496 million for Morocco underscores the country’s economic resilience and encourages ongoing structural reforms. While facing challenges such as drought and unemployment, Morocco is positioned for potential growth driven by infrastructure projects and domestic demand. The emphasis on climate efforts further illustrates Morocco’s commitment to sustainable development.

Original Source: www.moroccoworldnews.com