DR ‹ › The head of the International Monetary Fund (IMF) mission to Morocco, Laura Jaramillo, on Thursday in Rabat praised the significant progress made by the Kingdom in tax reform and the modernization of public administration. «Moroccan authorities are beginning to reap the benefits of several years of efforts, thanks to VAT and corporate tax reforms, as well as digitalization», Jaramillo said at a press briefing. She led an IMF delegation that visited Morocco from January 29 to February 11 as part of the 2026 Article IV consultations. She noted that these reforms, which have contributed to exceptional growth in public revenues, are expected to help sustain this positive momentum over the long term. Regarding economic outlook, the IMF projects Morocco's growth at 4.9% in 2026, driven by strong public and private investment and solid agricultural output following exceptional rainfall. She added that climate-related risks linked to drought appear less acute in the short term. However, Jaramillo pointed to external challenges, particularly the volatility of commodity and oil prices, as well as the economic slowdown in the Eurozone, Morocco's main trading partner, which could lead to a decline in foreign direct investment (FDI) and exports. The IMF also encouraged Bank Al-Maghrib to continue its transition toward an inflation-targeting regime, with a pilot phase scheduled for 2026 and full implementation in 2027. According to Jaramillo, this shift should be accompanied by greater exchange rate flexibility and clear communication on the transition process. On public finances, she stressed that Morocco's debt remains sustainable, with a moderate sovereign risk profile, and that its trajectory should gradually rebuild fiscal buffers over the medium term. Regarding pensions, the IMF welcomed the opening of dialogue among stakeholders and emphasized the need to ensure the financial sustainability of the system. She also highlighted that unemployment, particularly among young people, remains a major challenge. The IMF recommends strengthening the role of the private sector, expanding technical assistance and access to financing for SMEs, and better aligning training programs with labor market needs. On the climate front, Jaramillo praised measures aimed at strengthening resilience to climate change, particularly drought, through the development of desalination infrastructure and improved water resource management. During its mission, the IMF team held discussions with senior Moroccan government officials, representatives of Bank Al-Maghrib, and members of both the public and private sectors.
