Minister Nadia Fettah: Morocco Reduces Budget Deficit and Lowers Public Debt Ratio
The Minister of Economy and Finance, Nadia Fettah Alaoui, revealed new details regarding the state of Morocco’s public debt following a report from the African Export-Import Bank that ranked Morocco as the fourth most indebted economy in Africa.
The report warned of risks associated with external debt concentration and challenges facing the sustainability of public finances, emphasizing the need to balance economic resilience with effective financial management.
The minister explained that international institutions assess debt using the treasury debt metric, which includes both external and internal debts of the central government. She noted that Morocco’s ranking also considers debts of public institutions and companies, in addition to internally guaranteed debts of public enterprises.
The government official recorded an improvement in financial deficit indicators, as the budget deficit continued its downward trend, reaching 3.8% of Gross Domestic Product (GDP) by the end of 2024, compared to 4.3% by the end of 2023, representing an improvement of 0.5 percentage points. She attributed this to expenditure controls and improved financial resources.
The minister also stated that the ratio of public debt to GDP has decreased, with treasury debt standing at approximately 67.7% by the end of 2024, down from 69.5% at the end of 2023 and 71.5% at the end of 2022, reflecting ongoing efforts to contain debt levels and enhance macroeconomic indicators.
The African report noted that only six countries account for half of the continent’s external debt: South Africa, Egypt, Nigeria, Morocco, Mozambique, and Sudan. It highlighted Morocco’s share of this debt at 5.9%, according to a document published on May 28 titled “The Current Situation of the Debt Burden in Africa.”
