São Paulo – Structural economic reforms put in place by the Moroccan government are enabling the country to reduce its budget deficit, create jobs and grow. However, a document released on Wednesday (4th) by the International Monetary Fund (IMF), the North African country is still faced with challenges. Reducing social inequality, improving education and healthcare, and increasing the amount of women on the labor market are some of them. <\/p>\n
An IMF delegation was in Morocco from October 21st until last Wednesday to meet with local authorities. According to the IMF, Morocco should see 4.7% growth in its Gross Domestic Product (GDP) this year, primarily as a result of a good agribusiness crop. Inflation rates are low, as is credit provision, which needs to increase. In the document released by the Fund, mission chief Nicolas Blancher notes that growth is slow in sectors other than agribusiness. <\/p>\n
One of the causes is the slow recovery in Europe, a major trading partner of Morocco’s. Spain and France are some of its leading business partners. And this is not all. The country should post a budget deficit tantamount to 4.3% of GDP this year, and 3.5% in 2016. Nevertheless, it must go on implementing fiscal reforms, cutting subsidies, restructuring its retirement system, and making tax collection more “efficient and fair.” <\/p>\n
“Looking forward, efforts to improve the business environment, transparency and governance will be essential to enhance external competitiveness. We support the authorities’ efforts to improve financial inclusion and access to credit, especially for very small, small, and medium enterprises,” said Blancher in the document. The IMF expects GDP growth to slow down next year, to some 3%, and then pick up moderately in years to come, at 5%.<\/p>\n
The main goal of reforms, the Fund said, is to make sure Morocco’s economy becomes more resistant to “external shock” and enable investment in infrastructure, health, education and social protection, “which are crucial to raise the economy’s potential and inclusiveness.”<\/p>\n
*Translated by Gabriel Pomerancblum<\/strong><\/p>\n