{ "title": "IMF Executive Board Concludes 2025 Article IV Consultation, Third Review under the Resilience and Sustainability Facility with Morocco", "publication": "IMF News, April 8, 2025", "sourceUrl": "https://www.imf.org/en/news/articles/2025/04/08/pr25094-morocco-imf-concludes-2025-article-iv-consultation-third-review-under-the-rsf", "canonical": "https://www.imf.org/en/news/articles/2025/04/08/pr25094-morocco-imf-concludes-2025-article-iv-consultation-third-review-under-the-rsf", "overlayPath": "/en/news/articles/2025/04/08/pr25094-morocco-imf-concludes-2025-article-iv-consultation-third-review-under-the-rsf/index.md", "summary": "The Executive Board of the International Monetary Fund (IMF) concluded on March 17 the 2025 Article IV consultation with Morocco and completed the Third Review under the Resilience and Sustainability Facility (RSF) arrangement, which was approved in September 2023 (see PR 23/327).", "publishDate": "2025-04-08", "sections": [ { "heading": "Executive summary and financing", "content": "- The Executive Board concluded the 2025 Article IV consultation and completed the Third Review under the Resilience and Sustainability Facility (RSF) arrangement (approved in September 2023).\n- Completion of the Third Review allows the authorities to draw SDR 375 million (about US$ 496 million).\n- Total disbursement under the RSF arrangement now stands at SDR 937.5 million (about US$ 1.24 billion).\n- Press Release No. 25/094; conclusion date of Executive Board discussion: March 17." }, { "heading": "Growth, inflation, and external sector", "content": "- 2024 real GDP growth: 3.2 percent (estimated), down from 3.4 percent in 2023.\n- Growth outlook: GDP growth expected to accelerate to about 3.7 percent over the next few years.\n- 2024 drivers: Robust domestic demand helped offset weak agricultural output amid drought.\n- Unemployment: about 13 percent in 2024; elevated mainly due to job losses in the agricultural sector.\n- Inflation:\n - Inflation (period average) in 2024: 0.9\n - Inflation (end of period) in 2024: 2.1\n - Bank Al-Maghrib lowered the policy rate twice in June and December 2024.\n- Current account: widened somewhat in 2024.\n- Exchange rate: the dirham continued to move within the fluctuation band of ±5 percent." }, { "heading": "Fiscal developments and public debt", "content": "- 2024 central government overall deficit: 4.1 percent of GDP, about 0.2 percent of GDP less than projected in the 2024 Budget.\n- Revenue (central government, percent of GDP):\n - 2020: 27.0\n - 2021: 25.1\n - 2022: 28.4\n - 2023: 27.9\n - 2024: 30.1\n - 2025 (proj.): 30.4\n - 2026 (proj.): 29.4\n - 2027 (proj.): 28.1\n- Expenditure (central government, percent of GDP):\n - 2020: 34.1\n - 2021: 31.0\n - 2022: 33.8\n - 2023: 32.3\n - 2024: 34.2\n - 2025 (proj.): 34.3\n - 2026 (proj.): 32.8\n - 2027 (proj.): 31.4\n- Fiscal balance (central government, percent of GDP):\n - 2020: -7.1\n - 2021: -5.9\n - 2022: -5.4\n - 2023: -4.5\n - 2024: -4.1\n - 2025 (proj.): -3.9\n - 2026 (proj.): -3.4\n - 2027 (proj.): -3.3\n- Public debt (percent of GDP):\n - 2020: 72.2\n - 2021: 69.4\n - 2022: 71.5\n - 2023: 69.5\n - 2024: 70.0\n - 2025 (proj.): 68.9\n - 2026 (proj.): 67.7\n - 2027 (proj.): 66.8\n - 2028 (proj.): 66.2\n - 2029 (proj.): 65.6\n - 2030 (proj.): 65.1\n- Authorities are reforming the Organic Budget Law to introduce a new fiscal rule based on a medium-term debt anchor.\n- Directors encouraged saving at least part of the revenue windfall and implementing additional structural measures to increase revenue and rationalize spending." }, { "heading": "Monetary policy and financial sector", "content": "- Bank Al-Maghrib (BAM) lowered the policy rate twice in June and December 2024.\n- Directors supported BAM’s monetary policy stance and advised a cautious data-dependent approach.\n- Transition: Directors broadly concurred that the central bank should resume its planned transition to an inflation targeting framework and carefully remove the peg as conditions allow.\n- Financial sector risks noted: rising risks from NPLs and bank concentration.\n- Recommendations: introduction of a secondary market for NPLs; welcomed authorities’ request for an FSAP update.\n- Progress: Morocco progressing to align financial supervisory and regulatory framework with international standards." }, { "heading": "Structural reforms and RSF-related measures", "content": "- Structural agenda implementation continued: restructuring of SOEs, operationalization of the Mohammed VI Investment Fund, and implementation of the new Charter of Investment.\n- RSF third and final review measures implemented 6 of the 7 scheduled measures.\n- RSF measures aim to:\n - Better protect underground water resources.\n - Prepare the ground for a change in tariffication of water.\n - Improve the regulatory setting of the electricity market to encourage private sector production of renewable energy.\n - Reinforce fiscal and financial systems’ resilience to climate change-related risks.\n- Carbon tax: gradual introduction was not implemented; authorities need further analysis and deeper consultations." }, { "heading": "Executive Board assessment and policy recommendations", "content": "- Directors agreed with the thrust of the staff appraisal and welcomed Morocco’s resilience supported by strong policies and frameworks.\n- Policy guidance and priorities highlighted by Directors:\n - Continue prudent macroeconomic policies and implement structural reforms to support activity amid uncertainty.\n - Save part of revenue windfalls and rationalize spending to rebuild fiscal buffers.\n - Report budgetary implications and risks from Investment Charter and public private partnerships in the Medium-Term Fiscal Framework.\n - Introduce the planned medium-term debt anchored fiscal rule.\n - Further improve the business environment and market competition, including reforming state owned enterprises and reducing their presence outside strategic sectors.\n - Continue the fight against corruption.\n - Advance the regulatory framework for renewable energy production and improve grid capacity to secure private sector participation.\n- It is expected the next Article IV consultation will be held on the standard 12-month cycle." }, { "heading": "Selected economic indicators and memoranda (highlights)", "content": "- Population: 36.8 million; 2024\n- Per capita GDP: $3,817; 2023\n- Quota: SDR 894.4 million\n- Poverty rate: 4.8 percent; 2013\n- Main exports: automobiles, phosphate and derivatives; 2023\n- Key export markets: France and Spain (42% of total trade); 2023\n- Selected time-series datapoints:\n - Real GDP growth:\n - 2020: -7.2\n - 2021: 8.2\n - 2022: 1.5\n - 2023: 3.4\n - 2024: 3.2\n - 2025 (proj.): 3.9\n - 2026 (proj.): 3.7\n - 2027 (proj.): 3.6\n - Unemployment:\n - 2020: 11.9\n - 2021: 12.3\n - 2022: 11.8\n - 2023: 13.0\n - 2024: 13.3\n - 2025 (proj.): 13.2\n - 2026 (proj.): 12.9\n - 2027 (proj.): 12.4\n - 2028 (proj.): 12.1\n - Current account (percent of GDP):\n - 2020: -1.2\n - 2021: -2.3\n - 2022: -3.5\n - 2023: -0.6\n - 2024: -1.5\n - 2025 (proj.): -2.0\n - 2026 (proj.): -2.2\n - 2027 (proj.): -2.6\n - 2028 (proj.): -2.9\n - Gross reserves (months of imports):\n - 2020: 7.2\n - 2021: 5.8\n - 2022: 5.4\n - 2023: 5.2\n - 2024: 5.2\n - External debt (percent of GDP) selected years:\n - 2020: 54.2\n - 2021: 45.5\n - 2022: 46.9\n - 2023: 50.2\n - 2024: 47.8\n - 2025 (proj.): 49.2\n - 2026 (proj.): 50.0\n - 2027 (proj.): 50.9\n - 2028 (proj.): 54.0\n - 2029 (proj.): 57.3\n - Nominal GDP (in billions of U.S. dollars):\n - 2020: 121\n - 2021: 142\n - 2022: 131\n - 2023: 144\n - 2024: 155\n - 2025 (proj.): 166\n - 2026 (proj.): 177\n - 2027 (proj.): 188\n - 2028 (proj.): 199\n - 2029 (proj.): 212\n - 2030 (proj.): 225\n - Net imports of energy products (in billions of U.S. dollars):\n - 2020: -5.3\n - 2021: -8.4\n - 2022: -15.1\n - 2023: -11.5\n - 2024: -12.1\n - 2025 (proj.): -12.3\n - 2026 (proj.): -13.2\n - 2027 (proj.): -13.7\n - 2028 (proj.): -14.1\n\nSource: IMF Communications Department — \"IMF Executive Board Concludes 2025 Article IV Consultation, Third Review under the Resilience and Sustainability Facility with Morocco\", April 8, 2025.\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- IMF Policy Advice -- A Factsheet\n- IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet\n- Special Drawing Rights (SDRs) -- A Factsheet\n- Press Releases\n- PRESS CENTER\n- PR 23/327).\n- http://www.IMF.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2025/04/08/pr25094-morocco-imf-concludes-2025-article-iv-consultation-third-review-under-the-rsf" } ], "bullets": [ "[Markdown version](/en/news/articles/2025/04/08/pr25094-morocco-imf-concludes-2025-article-iv-consultation-third-review-under-the-rsf/index.md)", "[Structured JSON version](/en/news/articles/2025/04/08/pr25094-morocco-imf-concludes-2025-article-iv-consultation-third-review-under-the-rsf/index.json)", "[Bundle manifest](/en/news/articles/2025/04/08/pr25094-morocco-imf-concludes-2025-article-iv-consultation-third-review-under-the-rsf/bundle-manifest.json)", "Published: April 8, 2025", "The Executive Board concluded the 2025 Article IV consultation and completed the Third Review under the Resilience and Sustainability Facility (RSF) arrangement (approved in September 2023).", "Completion of the Third Review allows the authorities to draw SDR 375 million (about US$ 496 million).", "Total disbursement under the RSF arrangement now stands at SDR 937.5 million (about US$ 1.24 billion).", "Press Release No. 25/094; conclusion date of Executive Board discussion: March 17.", "2024 real GDP growth: 3.2 percent (estimated), down from 3.4 percent in 2023.", "Growth outlook: GDP growth expected to accelerate to about 3.7 percent over the next few years.", "2024 drivers: Robust domestic demand helped offset weak agricultural output amid drought.", "Unemployment: about 13 percent in 2024; elevated mainly due to job losses in the agricultural sector.", "Inflation:", "Current account: widened somewhat in 2024.", "Exchange rate: the dirham continued to move within the fluctuation band of ±5 percent.", "2024 central government overall deficit: 4.1 percent of GDP, about 0.2 percent of GDP less than projected in the 2024 Budget.", "Revenue (central government, percent of GDP):", "Expenditure (central government, percent of GDP):", "Fiscal balance (central government, percent of GDP):", "Public debt (percent of GDP):", "Authorities are reforming the Organic Budget Law to introduce a new fiscal rule based on a medium-term debt anchor.", "Directors encouraged saving at least part of the revenue windfall and implementing additional structural measures to increase revenue and rationalize spending.", "Bank Al-Maghrib (BAM) lowered the policy rate twice in June and December 2024.", "Directors supported BAM’s monetary policy stance and advised a cautious data-dependent approach.", "Transition: Directors broadly concurred that the central bank should resume its planned transition to an inflation targeting framework and carefully remove the peg as conditions allow.", "Financial sector risks noted: rising risks from NPLs and bank concentration.", "Recommendations: introduction of a secondary market for NPLs; welcomed authorities’ request for an FSAP update.", "Progress: Morocco progressing to align financial supervisory and regulatory framework with international standards.", "Structural agenda implementation continued: restructuring of SOEs, operationalization of the Mohammed VI Investment Fund, and implementation of the new Charter of Investment.", "RSF third and final review measures implemented 6 of the 7 scheduled measures.", "RSF measures aim to:", "Carbon tax: gradual introduction was not implemented; authorities need further analysis and deeper consultations.", "Directors agreed with the thrust of the staff appraisal and welcomed Morocco’s resilience supported by strong policies and frameworks.", "Policy guidance and priorities highlighted by Directors:", "It is expected the next Article IV consultation will be held on the standard 12-month cycle.", "Population: 36.8 million; 2024", "Per capita GDP: $3,817; 2023", "Quota: SDR 894.4 million", "Poverty rate: 4.8 percent; 2013", "Main exports: automobiles, phosphate and derivatives; 2023", "Key export markets: France and Spain (42% of total trade); 2023", "Selected time-series datapoints:", "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)", "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)", "[IMF Policy Advice -- A Factsheet](https://www.imf.org/en/about/factsheets/imf-surveillance)", "[IMF-World Bank Debt Sustainability Framework for Low-Income Countries -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/imf-world-bank-debt-sustainability-framework-for-low-income-countries)", "[Special Drawing Rights (SDRs) -- A Factsheet](https://www.imf.org/en/about/factsheets/sheets/2023/special-drawing-rights-sdr)", "[Press Releases](https://www.imf.org/en/news/searchnews)", "[PRESS CENTER](http://presscenter.imf.org/)", "[PR 23/327).](https://www.imf.org/en/News/Articles/2023/09/28/pr-23327-imf-approves-1-3-billion-under-the-rsf-arrangement-for-morocco)", "[http://www.IMF.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)", "[https://www.imf.org/en/home](https://www.imf.org/en/home)" ], "alternates": { "markdown": "/en/news/articles/2025/04/08/pr25094-morocco-imf-concludes-2025-article-iv-consultation-third-review-under-the-rsf/index.md", "json": "/en/news/articles/2025/04/08/pr25094-morocco-imf-concludes-2025-article-iv-consultation-third-review-under-the-rsf/index.json", "bundleManifest": "/en/news/articles/2025/04/08/pr25094-morocco-imf-concludes-2025-article-iv-consultation-third-review-under-the-rsf/bundle-manifest.json" }, "generatedAtUtc": "2026-09-26T03:45:03.639Z" }