In-Depth Analysis
Morocco
The Moroccan economy is fairly well diversified. However, it remains vulnerable in two main areas: firstly, its external position is highly reliant on the euro zone; and secondly, private consumption is highly dependent on the agricultural sector.
Macroeconomic imbalances have widened over the past quarter. Increased social tensions led the government to significantly raise spending on social programmes and transfers in the 2019 budget, weighing on the overall fiscal position. On the external front, recent poor performances in tourism revenues and FDI, coupled with high import demand, have resulted in lower foreign reserves levels and increased the need for external financing. Furthermore, the economic growth outlook remains dampened by an expected downturn in agricultural activity as well as slowing eurozone growth. Politically, our overall risk rating remains unchanged at low to moderate with the trend neutral. The main downside risk is of a sudden economic downturn, in which case we would expect dissidence, protest activity, strikes and crime to increase in intensity. (Source: Morocco Quarterly Update, published March 2018.)
Macroeconomic Data
(2018)
|
Fiscal Balance (as a % of GDP) |
-3.6 |
|
Consumer Price Index (% change y-o-y, avg) |
1.8 |
|
Current Account Balance (as a % of GDP) |
-4.5 |
|
Real GDP (annual % change) |
3.0 |
|
GDP per Capita, US$ |
3,284 |
|
Import Cover (months) |
6.3 |
|
Population, million |
36.2 |
| Total External Debt (as a % of GDP) |
45.8 |