The International Monetary Fund (IMF) has concluded its 2025 Article IV consultation with Morocco, commending the country’s economic progress while urging further reforms to address unemployment, strengthen fiscal buffers, and maintain inflation stability.
The IMF’s recommendations come as Morocco’s economy shows signs of recovery, with growth expected to accelerate to 3.9% in 2025, up from 3.2% in 2024, driven by a rebound in agricultural output and robust non-agricultural sector expansion.
“The IMF team held discussions with senior officials of the government of Morocco, Bank Al-Maghrib, and representatives of the public and private sectors,” said Senior Economist Roberto Cardarelli. “The team thanks the Moroccan authorities and other stakeholders for their hospitality and candid and productive discussions.”
Senior Economist Roberto Cardarelli and his team completed their 2025 Article IV Consultation after ten days of meetings and interviews with Moroccan authorities. This annual report is a mandatory component of the IMF’s commitment to monitoring the economic and fiscal policies of its member countries. Morocco has been a member of the International Monetary Fund since 1958.
Economic Growth and Inflation Outlook
Morocco’s post-pandemic economic recovery is gaining momentum supported by strong domestic demand and a revived investment cycle across multiple industries and sectors.
Bank Al-Maghrib, Morocco’s central bank, earned praise for maintaining a firm monetary policy stance which will stabilize inflation to around 2 percent in 2025.
“With inflation back to around 2 percent, Bank Al-Maghrib should continue its preparation to adopt an inflation-targeting framework,” stated Cardarelli in a press release.
The IMF highlighted Morocco’s success in reducing its fiscal deficit to 4.1% of GDP in 2024, lower than the 4.3% targe. This reduction was attributed to tax reforms and improved revenue collection. However, the IMF noted that only a small portion of the additional revenues were saved and urged the government to use future windfalls to accelerate debt reduction to pre-pandemic levels.
To strengthen fiscal buffers, the IMF recommended further expansion of the tax base, rationalizing spending, and reducing transfers to state-owned enterprises (SOEs). The ongoing reform of the Organic Budget Law, which introduces a medium-term debt anchor, was also seen as a favorable approach to strengthening Morocco’s economy. The consultation also encourages the inclusion of more detailed assessments of climate risks and public-private partnership (PPP) projects.
Addressing Unemployment
One of the most pressing challenges facing Morocco is its rising unemployment rate, which reached 13.3% in 2024, up from 13% the previous year. The agricultural sector, heavily impacted by consecutive droughts, has been a significant contributor to job losses. The IMF emphasized the need for a “novel approach” to active labor market policies, specifically addressing workers displaced from agriculture.
According to the latest report from the High Commission for Planning (HCP), 82,000 net jobs were created between 2023 and 2024.
While Morocco’s economic outlook is positive, the IMF’s recommendations underscore the need for continued reforms to ensure sustainable and inclusive growth.
K. Barrett Bilali is an independent journalist and founder of The AngloMedia Group.
