Economy
From The Report: Morocco 2015
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With steady GDP growth and consistently low inflation, Morocco’s economic performance has both diversified and strengthened in recent years on the back of growth in the secondary and tertiary sectors, as the government has been channelling capital into productive industries such as manufacturing, finance and telecoms. As an energy importer, the kingdom is benefitting from lower international oil prices, which along with recent subsidy reforms have helped reduce the budget and current account deficits. Most indicators suggest strong economic growth is on the cards for 2015, though a number of challenges still need to be tackled, including less-competitive productivity levels and a stubborn unemployment rate.

This chapter contains interviews with Mohamed Boussaïd, Minister of Economy and Finance; and Tas Anvaripour, CEO, Africa 50 Fund.

Articles from this Chapter

Overview

Morocco works to ensure future economic growth
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In recent years Morocco has seen steady GDP growth and consistently low inflation – in contrast to its neighbours to the north. The country’s economic performance has both diversified and strengthened on the back of growth in the secondary and tertiary sectors, and has been aided by government efforts to channel capital into other productive industries such as manufacturing, finance and telecoms. Import-dependent for its energy supplies, the kingdom is benefitting from low international oil prices,…

Analysis

Morocco cuts energy subsidies
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In the wake of the international financial crisis and the Arab Spring, Morocco has started running ever-widening fiscal and current account deficits. However, moves to slash energy subsidies, as well as the fall in international oil price, have helped to dramatically reduce both, boosting liquidity and exchange reserves. This has allowed the government to increase its focus on investment. Over the long term, the continued development of export-oriented industry, as well as plans to boost the role…

Interview

Mohamed Boussaïd, Minister of Economy and Finance: Interview
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Interview: Mohamed Boussaïd What kind of impact have recent cuts in energy and food subsidies had on the country’s economy? MOHAMED BOUSSAÏD: Subsidies have exposed the state budget to the volatility of global markets without resulting in any effective change in income distribution or improvements in economic competitiveness. With the increase in prices over the past few years, the cost of this system has become untenable and has started to pose a threat to the sustainability of our entire…

Interview

Tas Anvaripour, CEO, Africa 50 Fund: Interview
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Interview: Tas Anvaripour What are the biggest challenges for financing infrastructure projects in Africa? TAS ANVARIPOUR: Some African governments have successfully raised funding on international capital markets, as well as from growing pools of domestic capital, such as pension funds. Much of this funding has been used to finance critical infrastructure, particularly in transport and energy. International finance institutions have invested in public infrastructure as well as public-private partnerships…

Analysis

Demographic changes lead to pension reform in Morocco
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Moroccans benefit from a comparatively extensive social safety net, including a fairly large and generous pension scheme that begins at age 60 for government workers. However, a slowdown in hiring, combined with a demographic bulge that is on the verge of retirement, has combined to stretch the finances of the pension system – a challenge that is facing governments the world over. The Moroccan government, with IMF support, is pushing for reform of the system, but discussions have been slowed given…

Analysis

Morocco extends regional ties with Africa
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A tour of West and Central Africa by Morocco’s head of state in May 2015 has underlined the country’s increasing efforts to strengthen trade and investment ties with its neighbours south of the Sahara. Morocco’s government has sought to expand the country’s economic footprint in Africa in recent years, with King Mohammed VI spearheading a number of trips to West and Central African markets. The May delegation, which also included ministers and business leaders, followed a four-nation itinerary…