In a statement at the end of the visit, Jaramillo said Morocco’s economic recovery continues to strengthen. Growth for 2025 is estimated at 4.9%, supported by strong performance in agriculture, construction and services. Growth is expected to remain robust in 2026 at 4.8%, driven by higher public and private investment and solid agricultural output following exceptional rainfall.
Headline inflation averaged 0.8% in 2025 due to low food inflation. It is projected to rise gradually toward 2% by mid-2027 as earlier policy rate cuts and stronger activity support demand.
Jaramillo noted that despite higher levels of public investment, international reserves remain adequate. The current account deficit is expected to widen moderately because of the high import content of investment projects, although this will be partly offset by strong tourism receipts and higher foreign direct investment. She said global risks remain balanced, with potential headwinds from weaker growth in the Euro Area and commodity price volatility.
Tax revenues reached 24.6% of gross domestic product (GDP) in 2025, a substantial increase driven by recent reforms and improved administration. The central government deficit narrowed to 3.5% of GDP, outperforming the 2025 Budget estimate of 3.8%.
Jaramillo said that while some of the revenue overperformance appropriately supported additional investment and transfers to state-owned enterprises, saving part of this revenue in future years would strengthen fiscal buffers. She encouraged continued reprioritisation of spending and further investment in human capital, particularly health, education and social protection.
Reforms in these sectors have already improved access for vulnerable groups but require faster implementation. The IMF staff welcomed progress in developing the medium-term budget framework and in improving public investment management. Steps toward adopting a new fiscal rule were seen as an important advance. The Fund encouraged stronger identification and monitoring of fiscal risks, especially those linked to state-owned enterprises, and called for greater transparency within the medium-term framework.
With inflation well anchored, staff described the current neutral monetary policy stance as appropriate. They encouraged Bank Al Maghrib to continue moving toward greater exchange rate flexibility as part of the transition to a full inflation-targeting regime. Clear communication on the sequencing of reforms and policy priorities was highlighted as essential. The IMF also welcomed progress on non-performing loan reforms and broader steps to strengthen financial sector resilience.
Job creation remains one of Morocco’s most pressing challenges. Jaramillo said more dynamic private sector activity is needed, together with labour market reforms that increase participation and match skills with employer needs. She stressed the importance of accelerating reforms of state-owned enterprises to improve governance and ensure fair competition with private firms. Support for micro, small and medium-sized enterprises under the Investment Charter, regional investment centres, the Mohammed VI Investment Fund and the new micro, small, and medium enterprises charter was highlighted as positive.
The IMF urged close monitoring of the impact of these initiatives on employment outcomes. Staff also welcomed the ongoing implementation of the Job Plan 2030, which focuses on modernising labour market policies and supporting young people without formal qualifications.
The IMF team met senior officials from the Government of Morocco, Bank Al Maghrib and representatives from the public and private sectors. Jaramillo expressed appreciation for the authorities’ hospitality and the constructive nature of the discussions.
–IMF/ChannelAfrica–
