Morocco: Second Review under the Precautionary and Liquidity Line
IMF Staff Country Reports, September 27, 2013
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- Morocco: Second Review under the Precautionary and Liquidity Line
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Bibliographic details
- Published: September 27, 2013
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781484387986.002
Macroeconomic and fiscal findings
- The 2012 fiscal outcome entailed a significant slippage from the authorities’ target and exposed vulnerabilities in the budget framework.
- Core inflation has remained low.
- The unemployment rate remained about 9 percent.
- After worsening in 2012, the current account has been improving in 2013.
- Reserves have stabilized at about four months of imports.
- Liquidity conditions have remained tight.
- Credit growth has continued to decelerate, driven by both supply and demand factors.
Key themes and areas of vulnerability
- Fiscal framework weaknesses highlighted by the 2012 fiscal slippage.
- External position: improvement in the current account in 2013 alongside stabilized reserves.
- Monetary and financial conditions: persistent tight liquidity and slowing credit growth.
- Labor market: unemployment persistent at about 9 percent.
Implications for policy and monitoring
- Close monitoring of public financial management and government debt management given the budget framework vulnerabilities.
- Continued attention to liquidity conditions and measures to address both supply- and demand-side constraints on credit.
- Ongoing surveillance of external balances despite the 2013 improvement in the current account and stabilization of reserves.
International Monetary Fund. Morocco: Second Review under the Precautionary and Liquidity Line (IMF Staff Country Reports 2013, 302).