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Moody’s has upgraded Morocco’s outlook from “stable” to “positive,” while maintaining its rating at Ba1. This decision reflects global confidence in Morocco’s economy, demonstrating its ability to absorb shocks and recover from the impacts of the COVID-19 pandemic.
Economists view this shift as more than just a technical adjustment; it serves as an international signal of the strength of Morocco’s economic model and its capacity to manage financial and economic balances. The country has successfully reduced its budget deficit from 5.4% in 2022 to approximately 4.4% by 2024, with a target of 3% by 2026. Additionally, Morocco’s exports have experienced robust growth, particularly in the automotive sector, which exceeded 140 billion dirhams in transactions. Foreign reserves have also maintained a level sufficient to cover over five and a half months of imports, providing strong protection for the dirham.
The upgraded outlook is expected to enhance foreign investor confidence and sovereign wealth funds, allowing Morocco to mobilize private investments totaling 550 billion dirhams and create 500,000 jobs by 2026. Furthermore, this decision will lower borrowing costs for the state and Moroccan institutions, freeing up financial resources that were previously allocated for debt servicing.
Regionally, the international rating solidifies Morocco’s position as a stable platform in a turbulent environment, managing inflation at around 2%. The country continues to attract significant investments in strategic projects, such as the Nigeria-Morocco gas pipeline and the development of the green hydrogen sector, with initial investments projected to exceed 100 billion dirhams.
This decision gains strategic importance as Morocco prepares to host the 2030 World Cup, facilitating financing for major infrastructure projects, from stadiums and roads to high-speed rail, under favorable conditions. Additionally, support from the International Monetary Fund through a $5 billion credit line further reinforces confidence in the resilience of the Moroccan economy.
