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Morocco: High Planning Commissioner Calls for Exploiting Inflation to Encourage Growth

High Planning Commissioner Ahmed Lahlimi Alami speaks during a news conference at the Royal Mansour Hotel in Casablanca, Morocco, Tuesday, Jan. 20, 2015. (AP Photo/Abdeljalil Bounhar)
High Planning Commissioner Ahmed Lahlimi Alami speaks during a news conference at the Royal Mansour Hotel in Casablanca, Morocco, Tuesday, Jan. 20, 2015. (AP Photo/Abdeljalil Bounhar)
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Morocco: High Planning Commissioner Calls for Exploiting Inflation to Encourage Growth

High Planning Commissioner Ahmed Lahlimi Alami speaks during a news conference at the Royal Mansour Hotel in Casablanca, Morocco, Tuesday, Jan. 20, 2015. (AP Photo/Abdeljalil Bounhar)
High Planning Commissioner Ahmed Lahlimi Alami speaks during a news conference at the Royal Mansour Hotel in Casablanca, Morocco, Tuesday, Jan. 20, 2015. (AP Photo/Abdeljalil Bounhar)

High Planning Commissioner Ahmed Lahlimi Alami noted that the majority of emerging economies are witnessing an inflation rate of more than seven percent, while inflation in Morocco rated less than one percent.

He criticized the government for encouraging foreign investment by major companies rather than empowering small and medium enterprises.

At a press conference he held in Casablanca on the economic situation in 2019 and its outlook in 2020, Lahlimi expected Morocco’s growth rate to drop from 3 to 2.7 percent this year due to the decline in the agricultural sector’s net output.

He expected the non-agricultural sector to witness a growth from 2.8 to 3.2 percent in 2018.

The Moroccan auto industry will witness a 6 percent relapse due to the global market crisis, he added.

This sector – highly supported by the government – has made a remarkable achievement, forming more than 20 percent of total Moroccan exports, Lahlimi said.

He demanded the government to adopt an expansionary fiscal policy to back economic growth and allow the government to pay off its debt.

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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
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Moody's Upgrades Saudi Arabia's Credit Rating

Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters
Moody's indicated that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification. Reuters

The credit rating agency “Moody’s Ratings” upgraded Saudi Arabia’s credit rating to “Aa3” in local and foreign currency, with a “stable” outlook.
The agency indicated in its report that the rating upgrade and stable outlook are results of the Kingdom's ongoing progress in economic diversification and the robust growth of its non-oil sector. Over time, the advancements are expected to reduce Saudi Arabia’s exposure to oil market developments and long-term carbon transition on its economy and public finances.
The agency commended the Kingdom's financial planning within the fiscal space, emphasizing its commitment to prioritizing expenditure and enhancing the spending efficiency. Additionally, the government’s ongoing efforts to utilize available fiscal resources to diversify the economic base through transformative spending were highlighted as instrumental in supporting the sustainable development of the Kingdom's non-oil economy and maintaining a strong fiscal position.
In its report, the agency noted that the planning and commitment underpin its projection of a relatively stable fiscal deficit, which could range between 2%-3% of gross domestic product (GDP).
Moody's expected that the non-oil private-sector GDP of Saudi Arabia will expand by 4-5% in the coming years, positioning it among the highest in the Gulf Cooperation Council (GCC) region, an indication of continued progress in the diversification efforts reducing the Kingdom’s exposure to oil market developments.
In recent years, the Kingdom achieved multiple credit rating upgrades from global rating agencies. These advancements reflect the Kingdom's ongoing efforts toward economic transformation, supported by structural reforms and the adoption of fiscal policies that promote financial sustainability, enhance financial planning efficiency, and reinforce the Kingdom's strong and resilient fiscal position.