Morocco's Economy Shows Resilience: S&P Global Ratings Upgrades Outlook
Morocco has ended the week on a positive note, with S&P Global Ratings upgrading the kingdom's long- and short-term ratings to "BB-/A-3" from "BBB+/B". This upgrade reflects an improvement in macroeconomic indicators, with a stable outlook.
Economic Consolidation Efforts Pay Off
In recent years, Rabat has worked towards a gradual budget consolidation to contain its current deficit. Inflation has been managed, and foreign exchange reserves are adequate. S&P highlighted that the implementation of policies to address structural vulnerabilities has been essential to the country's economic resilience in the face of external shocks.
Positive Economic Outlook for 2025
Morocco's economy is expected to remain strong in 2025, with the American agency forecasting an average real GDP growth rate of 4% between 2025 and 2028, driven by domestic demand, particularly investment. The GDP per capita is expected to increase from $4,700 in 2025 to over $5,700 in 2028, although it remains relatively low for this level of rating.
Budget Deficit and Public Debt Projections
S&P expects Morocco's budget deficit to decrease to 3% of GDP by 2026, thanks to sustained nominal economic growth and the implementation of budget reforms. The net public debt is expected to decrease, falling below 60% of GDP by 2028, compared to 62.3% in 2024. Interest payments are expected to remain around 7% of public revenues. The current account deficit is expected to slightly widen, exceeding 2% of GDP on average between 2025 and 2028.
Increase in Foreign Direct Investment
Foreign direct investment is expected to increase by over 20% per year between 2025 and 2028, particularly in the energy, automotive, transportation, pharmaceutical, and investment sectors related to the 2025 Africa Cup of Nations and the 2030 FIFA World Cup.
