International Monetary Fund publishes Morocco Article IV consultation and Flexible Credit Line review noting 4.8% growth and a 3.5% fiscal deficit

The International Monetary Fund published the staff report and related documents for Morocco’s 2026 Article IV consultation and review under the Flexible Credit Line arrangement, highlighting faster growth, low inflation and a modestly wider external deficit alongside continued fiscal consolidation. Real GDP growth accelerated to 4.8% in 2025 Q1 to Q3, supported by a rebound in agricultural output and a surge in large-scale infrastructure projects. With inflation remaining low, Bank Al-Maghrib maintained a neutral policy stance after earlier rate cuts. The current account widened moderately as imports rose with investment, partly offset by strong tourism, while revenue overperformance financed additional investment and transfers and supported a slightly faster-than-expected reduction in the overall fiscal deficit to 3.5% of GDP. The report notes progress on structural reforms and accelerated implementation of health, education and employment strategies, and links Morocco’s hosting of large international events including the 2030 FIFA World Cup and S&P’s upgrade to investment grade to stronger investor confidence and new growth opportunities.