Rabat – Moody’s has completed The regular review of the credit assessment of Morocco, which it holds at BA1 without changes.
The evaluation shows a strong mix of strengths and challenges, with effective guidelines and a solid basis for domestic financing, which was compensated for by relatively low income levels and risks in the public and banking sector.
While the debt continues to increase, Morocco has maintained social cohesion and supported its economy by youngest shocks.
Economic growth slowed down to 2.6% in 2024, compared to 3.4% in 2023, since the weak precipitation impaired agricultural production. In the medium term, analysts expect a back rim to 3.5%, which is due to structural reforms.
The budget deficit was 4.3% of GDP, slightly better than the forecast of 4.5%, since the tax income was more than expected. The current account deficit remained stable at 2.5% of GDP, supported by tourism, exports and important transfers from Moroccans abroad.
Morocco Fort to face structural challenges. The income of the per capita and the commitment of climate risks in the per capita income show the economic prospects, although the higher-quality industries are gradually expanding. The country benefits from a strong institutional framework and disciplined monetary and budgetary policy and receives a BAA2 government score.
However, trust in the activities of the public sector and foreign currency debt is risks on 17.6% of GDP. The banking sector remains stable, but has weaknesses in connection with credit concentration and international business activities.
Moody’s stable view signals confidence in Morocco’s ability to manage the economic pressure.
The agency states that successful economic and social reforms could improve the resilience and sustainability of the debts. Rising public expenses, especially with regard to infrastructure and social programs, can question fiscal stability.
An improved assessment would require stronger non -agricultural growth, formal creation of jobs and reduced inequalities. On the other hand, more severe debt loads, especially from the public sector obligations, could be under pressure on future ratings.
