We project Morocco's real growth will increase moderately over the next few years to average 3% of GDP after a severe drought in 2015-2016. We expect growth performance in Morocco to remain vulnerable to volatility in the agricultural sector and external demand fluctuations from Europe, following the U.K. Brexit vote. We also expect Morocco's external and fiscal deficits to continue to improve over the coming years, supported by low energy prices, auto and aeronautics exports growth, and implementation of domestic reforms. We are affirming our long- and short-term ratings on Morocco at 'BBB-/A-3'. The stable outlook reflects our expectation that public finance reforms will proceed, while fiscal and current account deficits will continue to decline over the next few years
