Morocco’s economy strengthened last year on recovery in domestic demand and exports, with growth expected to pick up to about 3.5 percent over the medium term, boosted by stronger investment, the International Monetary Fund has said.
Stronger domestic demand should gradually “widen the current account deficit towards 3 percent” of gross domestic product, while inflation is projected to “continue to fall slowly as pressures on commodity and food prices fade”, the IMF said on Wednesday, following a staff visit.
The gradual reduction of the fiscal deficit over the next three years looks “appropriate”, the IMF added.
“This will require completing the reform of the tax system, including the VAT [value added tax], improving tax administration, rationalizing spending, including the transfers to state-owned enterprises, and expanding the use of the Unified Social Registry to all social programs.”
Morocco must focus on accelerating structural reforms to boost inclusive growth, the IMF said.
