The International Monetary Fund (IMF) approved a $496 million disbursement to Morocco on Tuesday, following the completion of the third and final review of its Resilience and Sustainability Facility (RSF) program. This brings the total funding under the program to $1.24 billion. According to IMF Deputy Managing Director Kenji Okamura, Morocco's economy has demonstrated resilience in the face of economic shocks, supported by strong policies. Despite another year of drought, growth is expected to slow only slightly, reaching 3.2% in 2024 before accelerating to 3.7% in the coming years, driven by structural reforms and infrastructure projects. However, unemployment remains high at around 13%, primarily due to job losses in the agricultural sector. Meanwhile, easing inflation has enabled Bank Al-Maghrib to lower its key interest rate to 2.25%, marking its second consecutive cut. Approved in September 2023, the RSF program aims to support Morocco's ecological transition and enhance its resilience to natural disasters, particularly in the wake of the devastating earthquake that struck the country in September 2023. The IMF has praised Morocco's progress in tax reform, integrating climate risk into its budget framework, and strengthening the Mohammed VI Investment Fund, which improves financing access for SMEs. Of the seven planned reforms under the program, six have already been implemented, including water management, electricity sector liberalization, and assessing climate risks to financial stability. However, the introduction of a carbon tax has been postponed to allow for a more comprehensive analysis of its impact.
