## IMF Staff Completes 2025 Article IV Consultation with Morocco

_IMF News, February 10, 2025_

## Source details

**Canonical URL:** [IMF Staff Completes 2025 Article IV Consultation with Morocco](https://www.imf.org/en/news/articles/2025/02/10/pr-2533-morocco-imf-staff-completes-2025-article-iv-consultation)

## Other formats

- [Markdown version](/en/news/articles/2025/02/10/pr-2533-morocco-imf-staff-completes-2025-article-iv-consultation/index.md)
- [Structured JSON version](/en/news/articles/2025/02/10/pr-2533-morocco-imf-staff-completes-2025-article-iv-consultation/index.json)
- [Bundle manifest](/en/news/articles/2025/02/10/pr-2533-morocco-imf-staff-completes-2025-article-iv-consultation/bundle-manifest.json)

## Bibliographic details
- Published: February 10, 2025

---

### Mission overview
- IMF staff team led by Roberto Cardarelli conducted discussions with the Moroccan authorities in Rabat on the 2025 Article IV Consultation from January 27 to February 7.
- End-of-Mission press release dated February 10, 2025.
- The statement conveys preliminary findings of IMF staff and does not necessarily represent the views of the IMF’s Executive Board.

### Growth outlook and external balance
- Economic activity is expected to have grown by 3.2 percent in 2024.
- Economic activity is expected to accelerate to 3.9 percent in 2025 as:
  - agricultural output rebounds after recent droughts, and
  - the nonagricultural sector continues to expand at a robust pace amid strong domestic demand.
- Higher growth is expected to increase the current account deficit towards its estimated medium-term norm of around 3 percent.
- Inflation is expected to stabilize at around 2 percent.
- Risks to the outlook are broadly balanced, with significant uncertainty regarding the economic impact of geopolitical tensions and changing climate conditions.

### Monetary policy assessment
- Inflation expectations are anchored around 2 percent with little signs of demand pressures.
- The current broadly neutral monetary policy stance is appropriate.
- Staff agrees with Bank Al-Maghrib that future changes of policy rates should remain data dependent.
- Recommendation: With inflation back to around 2 percent, Bank Al-Maghrib should continue its preparation to adopt an inflation-targeting framework.

### Fiscal developments and recommendations
- Recent reforms to the tax system and tax administration have helped expand the tax base while lowering the tax burden.
- Tax revenues in 2024 have been greater than expected.
- Central government’s deficit for 2024 was 4.1 percent of GDP compared to the 4.3 announced in the 2024 Budget.
- The 2025 Budget confirms the gradual pace of fiscal adjustment projected last year.
- Recommendation: Higher-than-expected revenues should be used to accelerate the pace of debt reduction to levels closer to pre-pandemic.
- Recommendation: Continue financing structural reforms while making further efforts to expand the tax base and rationalize spending, including by reducing transfers to state-owned enterprises as part of the ongoing reform of the sector and expanding the use of the Unified Social Registry to all social programs.

### Fiscal framework, climate risk, and PPPs
- Staff welcomes the ongoing reform of the Organic Budget Law that should introduce a new fiscal rule based on a medium-term debt anchor.
- Good progress has been made in the Medium-Term fiscal framework to include an assessment of the risk from climate change.
- Recommendation: Authorities should build on this progress by adding more information on the impact of new policy measures and a quantification of the risks from the increased reliance on public-private partnership (PPP) projects.

### Structural reforms, labor market, and SME development
- Structural reforms should focus on strengthening job creation by:
  - better targeting active labor market policies, with special focus on labor displaced from the agricultural sector due to the sequence of droughts;
  - consolidating programs to support small and medium firms;
  - removing regulatory distortions that hinder firms’ growth.
- Staff welcomes the progress in the operationalization of the Mohammed VI Investment Fund that should help SMEs access equity financing.
- Policy recommendations to encourage private sector development:
  - Strengthen the support for SMEs under the new Charter of Investment.
  - Strengthen regional investment centers so they can better help SMEs access financial and technical resources needed for their growth.
  - Review the labor code, tax system, and regulatory and governance frameworks to remove distortions that incentivize firms to remain small or informal.
  - Ensure ongoing SOE reform effectively pursues market neutrality between public and private sector firms.

### Engagement and acknowledgements
- The IMF team held discussions with senior officials of the government of Morocco, Bank Al-Maghrib, and representatives of the public and private sectors.
- The team thanks the Moroccan authorities and other stakeholders for their hospitality and candid and productive discussions.

*IMF Staff press statement, February 10, 2025.*

---


## References

- [Morocco and the IMF](http://www.imf.org/external/country/MAR/index.htm)
- [IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)
- [Press Releases](https://www.imf.org/en/news/searchnews)
- [PRESS CENTER](http://presscenter.imf.org/)
- [https://www.imf.org/en/home](https://www.imf.org/en/home)

_Source: https://www.imf.org/en/news/articles/2025/02/10/pr-2533-morocco-imf-staff-completes-2025-article-iv-consultation_