The International Monetary Fund’s Executive Board concluded the 2026 Article IV consultation with Morocco and completed the mid-term review under the Flexible Credit Line (FCL) arrangement approved on 2 April 2025, with the authorities consenting to publication of the staff report. Directors agreed that Morocco continues to meet the qualification criteria for the FCL and considered maintaining the current level of access appropriate, with the arrangement remaining precautionary and an eventual gradual exit dependent on the evolution of external risks. The consultation highlighted stronger estimated 2025 growth of 4.9% alongside low average inflation of 0.8%, a wider current account deficit of 2.1% of GDP, and a smaller-than-expected overall fiscal deficit of 3.5% of GDP. Staff projections put real GDP growth at 4.4% in 2026 and 4.5% in 2027, with inflation expected to rise temporarily mainly on higher energy prices before settling around 2% over the medium term; fiscal plans were assessed as consistent with a gradual reduction in debt to 60.5% of GDP by 2031. Directors supported Bank Al-Maghrib’s neutral, data-dependent stance and encouraged continued transition toward greater exchange rate flexibility and a full-fledged inflation-targeting framework, while urging additional fiscal buffer rebuilding (including saving part of any revenue overperformance), implementation of a medium-term debt-anchored fiscal rule, stronger public financial management and fiscal risk quantification, and progress on state-owned enterprise and public investment management reforms; they also called for enhanced monitoring of banks’ public sector exposures and concentration risks and timely operationalization of the secondary non-performing loan market. The staff report is expected to be published shortly on the IMF’s Morocco page, and the next Article IV consultation is expected on the standard 12-month cycle.
International Monetary Fund 2026-03-25
International Monetary Fund completes Morocco Article IV and mid-term Flexible Credit Line review and keeps access unchanged
The IMF's Executive Board concluded the 2026 Article IV consultation with Morocco, affirming its qualification for the Flexible Credit Line and maintaining the current access level. The consultation noted Morocco's stronger estimated 2025 growth of 4.9%, low inflation, and fiscal deficit improvements, with projections for continued growth and inflation stabilization. Directors supported Bank Al-Maghrib's policies and recommended further fiscal reforms, exchange rate flexibility, and enhanced monitoring of financial risks.