Morocco: 2026 Article IV Consultation and Review Under the Flexible Credit Line Arrangement-Press Release; Staff Report; and Statement by the Executive Director for Morocco

Real GDP growth accelerated to 4.8 percent in 2025Q1:Q3, supported by a rebound in agricultural output and a surge in large-scale infrastructure projects. Inflation remained low, allowing Bank Al-Maghrib to maintain a neutral policy stance after earlier rate cuts. The current account widened moderately as imports rose with investment, partly offset by buoyant tourism. Revenue overperformance has been used for additional spending on investment and transfers and a slightly faster than expected reduction in the overall fiscal deficit to 3.5 percent of GDP. Structural reforms are advancing in key areas, and implementation of health, education, and employment strategies is being accelerated. Morocco’s hosting of large international events (including the 2030 FIFA World Cup) and the upgrade to investment grade by S&P reflect strong investor confidence and open new opportunities for growth.