IMF Approves $496 Million Disbursement to Strengthen Morocco’s Economic Resilience
The IMF has approved a $496 million disbursement for Morocco under the Resilience and Sustainability Facility, enhancing total support to approximately $1.24 billion. Morocco’s economy is projected to accelerate despite challenges, with GDP growth forecasted at 3.2% for 2024. Infrastructure projects for the 2030 World Cup are central to this growth, along with necessary reforms.
The International Monetary Fund’s (IMF) executive board has authorized a $496 million disbursement as the third tranche under the Resilience and Sustainability Facility for Morocco. This allocation raises the total disbursement to approximately $1.24 billion. The IMF indicated that Morocco’s economy has demonstrated resilience in the face of continued drought conditions.
The IMF forecasts that Morocco’s economic growth is anticipated to accelerate over the medium term, driven by stronger investments and comprehensive structural reforms. Despite a modest expected slowdown, economic growth is projected to only decrease slightly to 3.2 percent in 2024, thanks in part to robust domestic demand, despite a widening current account deficit.
Morocco continues to grapple with challenges such as elevated unemployment, which stands around 13%, particularly impacting the agricultural sector. Nevertheless, the IMF expects GDP growth to rebound to approximately 3.7% in the coming years, bolstered by ongoing infrastructure projects and reforms aligned with the nation’s growth agenda.
Many of these infrastructure initiatives are part of Morocco’s extensive preparations for hosting the 2030 World Cup, involving the construction of new stadiums, renovations of existing ones, and significant enhancements to roadway and railway systems.
Kenji Okamura, Deputy Managing Director and Acting Chair of the IMF, praised Morocco’s economic resilience in weathering negative shocks, attributing this to the country’s “very strong economic policies and frameworks.” He noted that, despite persistent drought conditions, economic activity is anticipated to only slow modestly in the near term, largely due to solid domestic demand.
The IMF also emphasized the importance of Morocco’s ongoing reforms, which are vital for fostering stronger, more resilient, job-rich, and inclusive growth. It highlighted Morocco’s climate initiatives, including measures implemented to safeguard groundwater resources and enhance regulations facilitating private sector investment in renewable energy production.
In conclusion, the IMF’s approval of $496 million reflects Morocco’s economic resilience amidst challenges such as drought and high unemployment. The anticipated economic growth is supported by investments in infrastructure and ongoing reforms. Furthermore, Morocco’s proactive climate initiatives illustrate its commitment to sustainable development and economic progress. Overall, the IMF remains optimistic about Morocco’s economic trajectory in the coming years.
Original Source: www.moroccoworldnews.com
