The International Monetary Fund (IMF) has advised Morocco to establish a clear inflation target for its central bank, Bank Al Maghrib, amidst a backdrop of easing inflationary pressures.
Morocco saw a reduction in annual inflation to 6.1% in 2023 from 6.6% in 2022, with further moderation expected to 2.4% in the current year. This decline is attributed to lower prices of imported goods and improved stability in food markets.
The IMF recommends that Bank Al Maghrib resume its transition towards an inflation-targeting framework, supported by its decision to maintain the benchmark interest rate at 3%. Additionally, the IMF suggests fiscal reforms to enhance tax revenue and expand social welfare programs for medium-term fiscal consolidation.
To tackle rising unemployment, which reached 13% in 2023, the IMF advises reforms such as restructuring state-owned enterprises and promoting private sector investment. Furthermore, the IMF stresses the importance of infrastructure improvement to address water scarcity issues exacerbated by drought conditions.
Morocco’s progress in liberalizing the electricity market is lauded, with the IMF anticipating a smooth transition to renewable energy sources.
Looking ahead, the IMF forecasts gradual economic growth for Morocco, driven by domestic demand, increased exports, and heightened investment activity.
The IMF’s recommendations aim to support sustainable growth and stability in Morocco’s economy amidst evolving challenges and opportunities.
photo source: Google
By: Montel Kamau
Serrari Financial Analyst
22nd February, 2024
Article and News Disclaimer
The information provided on www.serrarigroup.com is for general informational purposes only. While we strive to keep the information up to date and accurate, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability with respect to the website or the information, products, services, or related graphics contained on the website for any purpose. Any reliance you place on such information is therefore strictly at your own risk.
www.serrarigroup.com is not responsible for any errors or omissions, or for the results obtained from the use of this information. All information on the website is provided on an "as-is" basis, with no guarantee of completeness, accuracy, timeliness, or of the results obtained from the use of this information, and without warranty of any kind, express or implied, including but not limited to warranties of performance, merchantability, and fitness for a particular purpose.
In no event will www.serrarigroup.com be liable to you or anyone else for any decision made or action taken in reliance on the information provided on the website or for any consequential, special, or similar damages, even if advised of the possibility of such damages.
The articles, news, and information presented on www.serrarigroup.com reflect the opinions of the respective authors and contributors and do not necessarily represent the views of the website or its management. Any views or opinions expressed are solely those of the individual authors and do not represent the website's views or opinions as a whole.
The content on www.serrarigroup.com may include links to external websites, which are provided for convenience and informational purposes only. We have no control over the nature, content, and availability of those sites. The inclusion of any links does not necessarily imply a recommendation or endorsement of the views expressed within them.
Every effort is made to keep the website up and running smoothly. However, www.serrarigroup.com takes no responsibility for, and will not be liable for, the website being temporarily unavailable due to technical issues beyond our control.
Please note that laws, regulations, and information can change rapidly, and we advise you to conduct further research and seek professional advice when necessary.
By using www.serrarigroup.com, you agree to this disclaimer and its terms. If you do not agree with this disclaimer, please do not use the website.
www.serrarigroup.com, reserves the right to update, modify, or remove any part of this disclaimer without prior notice. It is your responsibility to review this disclaimer periodically for changes.
Serrari Group 2023
