IMF projects Morocco's growth at around 4% and a budget deficit of 4.9% in 2014.
20 December 2013
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The International Monetary Fund (IMF) projects Morocco's growth at around 4% and a budget deficit of 4.9% in 2014, based on an acceleration in the growth of the non-agricultural sector and an average harvest of 70 million quintals, announced Thursday in Rabat,
"The 4.9% budget deficit target is appropriate, provided that agricultural tax exemptions and compensation costs are reduced, the viability of public finances is preserved, and the budget framework is modernized through the implementation of the Organic Finance Law," said Mr. Dauphin, who led an IMF delegation.
The IMF recommends that Morocco continue the reforms underway, balance external accounts, ensure strong job-creating growth, and develop social protection.
For the year 2013, economic performance improved after the difficulties encountered in 2012, despite the difficult international economic situation, specified Mr. Dauphin.
Thus, Morocco will record growth of around 5% in 2013, thanks to the abundant cereal harvest, in a context of moderate inflation.
For its part, the budget deficit should decrease slightly thanks to measures taken at the level of expenditure and revenue, while foreign exchange reserves should be at 4 months, supported by the good performance of foreign direct investment (FDI).
"The improvement in the current account is the result of better external conditions, lower prices of raw materials on world markets, a bountiful cereal harvest and government efforts to reduce the public deficit," explained Mr. Dauphin.
The current exchange rate regime has helped maintain price stability, noted Mr. Dauphin, noting that the IMF recommends that Morocco opt for a more flexible exchange rate regime to allow the economy to better absorb shocks and be more competitive.
Mr. Dauphin highlighted the sound monetary and financial supervision policy pursued by Bank Al Maghrib, which helps maintain the health of the financial system.
On a visit to Morocco from December 5 to 19, an IMF delegation met with public authorities, the private sector and civil society.
The discussions focused on public policy, the precautionary and liquidity credit line, the economic performance achieved in 2013 and the prospects for 2014.
Atlasinfo
Published on December 19, 2013.
Posted online on December 20, 2013.
"The 4.9% budget deficit target is appropriate, provided that agricultural tax exemptions and compensation costs are reduced, the viability of public finances is preserved, and the budget framework is modernized through the implementation of the Organic Finance Law," said Mr. Dauphin, who led an IMF delegation.
The IMF recommends that Morocco continue the reforms underway, balance external accounts, ensure strong job-creating growth, and develop social protection.
For the year 2013, economic performance improved after the difficulties encountered in 2012, despite the difficult international economic situation, specified Mr. Dauphin.
Thus, Morocco will record growth of around 5% in 2013, thanks to the abundant cereal harvest, in a context of moderate inflation.
For its part, the budget deficit should decrease slightly thanks to measures taken at the level of expenditure and revenue, while foreign exchange reserves should be at 4 months, supported by the good performance of foreign direct investment (FDI).
"The improvement in the current account is the result of better external conditions, lower prices of raw materials on world markets, a bountiful cereal harvest and government efforts to reduce the public deficit," explained Mr. Dauphin.
The current exchange rate regime has helped maintain price stability, noted Mr. Dauphin, noting that the IMF recommends that Morocco opt for a more flexible exchange rate regime to allow the economy to better absorb shocks and be more competitive.
Mr. Dauphin highlighted the sound monetary and financial supervision policy pursued by Bank Al Maghrib, which helps maintain the health of the financial system.
On a visit to Morocco from December 5 to 19, an IMF delegation met with public authorities, the private sector and civil society.
The discussions focused on public policy, the precautionary and liquidity credit line, the economic performance achieved in 2013 and the prospects for 2014.
Atlasinfo
Published on December 19, 2013.
Posted online on December 20, 2013.
