Rabat: The head of the International Monetary Fund (IMF) mission in Morocco, Laura Jaramillo, has commended Morocco for its significant progress in fiscal reforms and administrative modernization. This announcement was made during a press briefing following an IMF team visit from January 29 to February 11, as part of the 2026 Article IV consultations with Morocco.

According to Agence Marocaine De Presse, Jaramillo highlighted the Moroccan authorities’ success in reaping benefits from reforms in VAT, corporate tax, and digitization efforts. These advances have led to notable growth in public revenues, which are expected to maintain a positive momentum.

Looking ahead, the IMF projects Morocco’s economic growth at 4.9% in 2026, fueled by public and private investment and strong agricultural output due to favorable rainfall. Jaramillo noted that the climate risk associated with drought appears less severe in the short term.

However, external risks remain a concern, including commodity and oil price volatility
and an economic slowdown in the eurozone, which could affect Morocco’s foreign direct investment (FDI) and exports. The IMF is also advocating for Bank Al-Maghrib (BAM) to continue its transition toward an inflation targeting regime, with a pilot phase in 2026 and full implementation by 2027. This transition should involve increased exchange rate flexibility and clear communication about the process.

On fiscal matters, the IMF indicated that Morocco’s debt remains sustainable with moderate sovereign risk, allowing for a gradual rebuilding of fiscal buffers over the medium term. The institution also welcomes the dialogue on pension reforms, emphasizing the need for financial sustainability in the system.

Unemployment, especially among young people, is highlighted as a critical challenge. The IMF recommends enhancing the role of the private sector, improving technical assistance, and increasing access to finance for micro, small, and medium-sized enterprises (MSMEs), as well as better aligning training with m
arket needs.

Jaramillo also praised Morocco’s measures to enhance resilience to climate change effects, such as drought, through desalination infrastructure and improved water resource management. During their mission, the IMF delegation engaged with senior officials from the Moroccan government, Bank Al-Maghrib, and representatives from both public and private sectors.