Morocco: First Review Under the Arrangement Under the Precautionary and Liquidity Line-Press Release; Staff Report; and Statement by the Executive Director for Morocco

IMF Staff Country Reports, October 23, 2019

Source details

Canonical URL

Morocco: First Review Under the Arrangement Under the Precautionary and Liquidity Line-Press Release; Staff Report; and Statement by the Executive Director for Morocco

Other formats

• Markdown version
• Structured JSON version
• Bundle manifest

Bibliographic details

• Published: October 23, 2019
• Series: IMF Staff Country Reports
• DOI: https://doi.org/10.5089/9781513517506.002

Overview

• This paper discusses Morocco’s First Review Under the Arrangement Under the Precautionary and Liquidity Line (PLL).
• The Moroccan authorities are committed to sustaining sound policies.
• The government’s economic program remains in line with key reforms agreed under the PLL arrangement, including to further reduce fiscal and external vulnerabilities, while strengthening the foundations for higher and more inclusive growth.
• The transition to greater exchange rate flexibility initiated in 2018 is expected to enhance the economy’s capacity to absorb shocks and preserve its external competitiveness.
• The current favorable economic environment remains supportive to continue this reform in a carefully sequenced and well-communicated manner.

Key Findings

• Continued reforms are needed to raise potential growth.
• High unemployment levels persist, especially among the youth.
• Female labor participation needs to be increased.
• Regional disparities remain significant and require policy attention.
• Reforms of education, governance, the labor market, and the business environment would help support more private sector-led growth and job creation.

Program and Reform Priorities

• Fiscal and external vulnerability reduction:
  • The government’s program under the PLL focuses on further reducing fiscal and external vulnerabilities.
• Exchange rate policy:
  • The transition to greater exchange rate flexibility, initiated in 2018, is a central element intended to enhance shock absorption and preserve external competitiveness.
• Structural reforms to support inclusive growth:
  • Education reform.
  • Governance reform.
  • Labor market reform.
  • Business environment reform.
• Sequencing and communication:
  • The report emphasizes that the reform toward greater exchange rate flexibility should be carefully sequenced and well-communicated.

Subjects and Keywords

• Subjects: External debt, External position, Financial institutions, Financial regulation and supervision, Loans, Public debt
• Keywords: Africa, article IV consultation discussion, article IV report, authority, CR, current account, Europe, Global, IMF's executive board, ISCR, Loans, PLL qualification criteria, policy, policy implementation, reform, The Article IV consultation discussion

Content in this bundle

• Executive Summary
  • Executive Summary (Markdown version)
  • Executive Summary (PDF)