“Fitch's” fixation on Morocco's credit rating at stable levels gave the government a new moral boost to proceed with the implementation of the economic recovery program. The agency gave a positive long-term assessment of foreign currency cash reserves at BP + with a stable outlook, indicating that the rating was supported by a moderate share of foreign currency debt within the total public debt. Estimates indicate that Morocco's external debt reached about 229 billion dirhams (about 21 billion dollars) by the end of this year, with a growth of about 10 percent on an annual basis. While the internal debt is expected to grow by 7.7 percent this year to reach nearly 731 billion dirhams (67 billion dollars), an annual comparison.
According to “Fitch”, the historical stability of Morocco's macroeconomic balances is reflected in relatively weak levels of inflation and the volatility of GDP in the pre-pandemic period. On the other hand, these qualifications are offset, at the same time, by weak indicators of development and governance, high public debt, and a larger budget and current account deficit compared to its peers.
Fitch expects growth to slow to 1.1 percent in 2022 due to the effects of the drought, a strong contraction in agricultural production, and inflation affecting consumption.
Source (Al-Arab Newspaper of London, Edited)
