Morocco: Second 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, January 28, 2020
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- Morocco: Second Review Under the Arrangement Under the Precautionary and Liquidity Line-Press Release; Staff Report; and Statement by the Executive Director for Morocco
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Bibliographic details
- Published: January 28, 2020
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513527055.002
Executive summary and authorities' commitments
- The paper discusses Morocco’s Second Review Under the Arrangement Under the Precautionary and Liquidity Line.
- The authorities are committed to further reduce fiscal and external vulnerabilities, while strengthening the foundations for higher and more inclusive growth.
- Building on recent progress in improving the business environment, sustained reforms are needed to:
- raise potential growth;
- reduce high unemployment, especially among the youth;
- increase female labor participation;
- reduce regional disparities.
Structural reforms to support private-sector led growth and jobs
- Reforms of education, governance, and the labor market are recommended to contribute to more private sector-led growth and job creation.
- Sustained reform momentum is emphasized to translate improvements in the business environment into stronger inclusive growth outcomes.
Fiscal stance, public debt, and public spending priorities
- Considering the slowdown in fiscal consolidation, policy recommendations include:
- stepped up tax reforms;
- a contained wage bill.
- Objectives of these measures:
- lower the public debt-to-gross domestic product ratio;
- secure priority investment and social spending in the medium term.
- A decisive and comprehensive tax reform should aim to:
- secure adequate revenues;
- bring about greater equity and simplicity of the tax system.
External sector and exchange rate policy
- The transition to greater exchange rate flexibility initiated in 2018 would:
- enhance the economy’s capacity to absorb shocks;
- preserve its external competitiveness.
Subject areas and keywords covered
- Subject: External debt, External position, Fiscal policy, Government debt management, Public debt, Public financial management (PFM)
- Keywords: Africa, authority, BAM governance arrangement, CR, current account, debt service, disparity, Europe, foreign direct investment, Global, Government debt management, inflation targeting, ISCR, Maghreb, reform, reform implementation, staff appraisal
Content in this bundle
- 1marea2020001