IMF announces 5.7% growth for Morocco this year

IMF announces 5.7% growth for Morocco this year
IMF announces 5.7% growth for Morocco this year

The International Monetary Fund (IMF), which projects growth of 5.7% in Morocco in 2021, expects the post-Covid recovery to “strengthen” in the Kingdom thanks to the recovery of exports , the good performance of the agricultural sector and the results of the policies implemented to fight the pandemic and accelerate vaccination.

“This recovery will strengthen in the future because the figures show that the growth of exports is strong, that the agricultural sector, which represents an important activity in Morocco, finds a solid recovery this year but also, that the capacity of the Moroccan economy to resume normal activity is materializing, ”Jihad Azour indicated in Washington on Tuesday.

“This is the result of the policies that have been put in place to fight the Covid with an acceleration of the vaccination,” Azour said in response to a question during a press briefing for the presentation of the IMF report on “Regional economic perspectives”.

In this new report published on the occasion of its autumn meetings, the IMF cites Morocco among the countries of the region which have “made good progress in their vaccination campaigns”, while recalling that at the regional level, as in around the world, “accelerating the acquisition and distribution of vaccines remains the top priority in the short term to save lives, promote recovery and prevent the gaps from widening.”

“Morocco is one of the countries which reacted the fastest and most effectively to fight against this health crisis”, recalled the head of the international financial institution, noting that thanks to a certain number of fiscal measures, monetary and financial, the Moroccan economy “succeeded last year in limiting the impact of this crisis”.

“In addition, Morocco has succeeded in providing social support to more than 5 million families who are in the informal sector. Also, the acceleration of vaccination and the measures taken to limit the impact of the health crisis on the economy have enabled Morocco to achieve a rapid recovery in 2021, and growth of 5.7% this year is forecast. , in fact, compensates for the contraction experienced by the Moroccan economy last year, ”he explained.

Recalling that the Fund is supporting Morocco in its transformation and reform policies, Azour said that the financial institution last year granted $ 3 billion from a line of precautions and liquidities (LPL) which enabled the Kingdom, “not only to strengthen its liquidity but also to give a strong signal to the market. This also allowed Morocco at the end of last year to return to the capital markets with a very successful issue ”.

As part of the IMF’s allocation of Special Drawing Rights (SDRs) in an amount equivalent to $ 650 billion, in order to increase the liquidity reserves of its member countries, Morocco has benefited. he said, of a tranche that “will help strengthen liquidity, improve reserves and also allow Morocco to face the aftermath of this crisis”.

At the regional level, a “fragile recovery” is expected with a real GDP increase of 4.1% in 2021 and 2022.

“The uneven and incomplete recovery, and new difficulties are emerging”, notes the international institution which cites among the challenges a new pandemic wave in countries where vaccination is progressing slowly, the risks of inflation, the shrinking of the macroeconomic policy space and rising inequalities.

 
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