Research Update: Morocco 'BBB-/A-3' Ratings Affirmed On Fiscal And External Profiles; Outlook Stable

We project Morocco's real growth will rise to 4.6% in 2015, consistent with robust agricultural production, and reach about 5% by 2018, sustained by an increase in manufacturing and services output. We expect economic activity to remain vulnerable to volatility in the agricultural sector and external demand fluctuations, notably in tourism. We expect Morocco's external and fiscal deficits to continue to narrow, supported by public finance reforms and improvements in the external account. Government domestic and external debts should decline gradually over the next few years, from currently elevated levels. We are affirming our long- and short-term foreign and local currency sovereign credit ratings on Morocco at 'BBB-/A-3'. The stable outlook reflects our expectation that public finance reforms will proceed,

...We project Morocco's real growth will rise to 4.6% in 2015, consistent with robust + agricultural production, and reach about 5% by 2018, sustained by an increase in manufacturing and services output. We expect economic activity to remain vulnerable to volatility in the agricultural sector and external demand fluctuations, notably in tourism. We expect Morocco's external and fiscal deficits to continue to narrow, supported + by public finance reforms and improvements in the external account. Government domestic and external debts should decline gradually over the next few years, from currently elevated levels. We are affirming our long- and short-term foreign and local currency sovereign + credit ratings on Morocco at '###-/A-3'. The stable outlook reflects our expectation that public finance reforms will + proceed, while fiscal and current account deficits continue to decline over the next few years and economic growth improves....

Research Update