Absent any significant decline in external demand due to rising global protectionism and the ongoing slowdown in European economic growth, we project Morocco's real GDP growth will decline to 3.2% over 2018-2019, before firming to about 4.0% by 2021. We now expect the Moroccan government to deviate significantly from its 2018 budget deficit target of 3.0% of GDP and instead post a deficit of about 3.8% of GDP, entailing a further increase in government debt. As a result, we are revising our outlook on Morocco to negative from stable, and affirming the ratings at 'BBB-/A-3'. The negative outlook reflects the government's deviation from its budgetary consolidation plan, alongside our projection that budgetary pressures will likely persist over the coming two
