Rabat - The International Monetary Fund (IMF) has revised its Gross Domestic Product (GDP) estimates for Morocco downwards to 3.5% for 2014, against 3.9% projected in July last year.
This is still higher than the projected GDP growth by the Bank Al Maghrib of 2.5%. The IMF also anticipates a rebound in 2015, thanks to structural reforms which it says have been successful.
Elsewhere in the Maghreb, the IMF forecasts that Tunisia GDP will be 2.8% in 2014, and 3.7% in 2015, and Algeria will have an estimated growth of3.8 % in 2014, and 4% in 2015. Globally, growth is now estimated at 3.3 percent in 2014, and 3.8 percent in 2015
The IMF notes that recent structural reforms in Morocco are starting to gain traction and signal the government’s future policy direction. For example, Morocco’s diversification efforts particularly with the auto industry have helped increase export enabled firms to increase production in response to strengthening export demand.
Globally, Christine Lagarde, Managing Director of the IMF, has noted that growth is still weak and mediocre despite encouraging results in the USA and UK. She called for central banks to make banking sector reforms.
Stock markets have recently dropped due to concerns over global growth.