Morocco: 2013 Article IV Consultation-Staff Report; Press Release; and Statement by the Executive Director for Morocco

IMF Staff Country Reports, March 6, 2014

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This paper discusses Morocco’s 2013 Article IV Consultation on economic developments and policies.
The IMF report highlights that despite unfavorable external and domestic environment Morocco’s economic performance has improved during 2013.
Morocco’s economy remains vulnerable to international conditions and a difficult regional environment.
The report focuses on the importance of giving more flexibility in the exchange rate regime to:
- support competitiveness,
- enhance the capacity of the economy to absorb shocks, and
- support the authorities’ strategy for diversifying external flows away from Europe.

Economic performance improved during 2013 despite unfavorable external and domestic environment.
The economy remains vulnerable to international conditions and a difficult regional environment.
Greater exchange rate flexibility is emphasized as important for competitiveness, shock absorption, and diversification of external flows away from Europe.

Give more flexibility in the exchange rate regime to:
- support competitiveness,
- enhance the economy’s capacity to absorb shocks,
- support the authorities’ strategy for diversifying external flows away from Europe.

Subjects: Balance of payments, Banking, Credit, Current account, Employment, Financial institutions, Fiscal policy, Labor, Loans, Money
Keywords: authorities adjustment, CR, Credit, Current account, deficit target, dirham exchange rate, Employment, Europe, exchange rate, Global, government, government coalition, holding, IMF staff estimate, ISCR, Loans, Maghreb