Abhatoo - Centre Nationale de Documentation

Macroeconomic vulnerabilities have declined since 2012, but growth remainssubdued and se nsitive to volatile agricultural output. External imbalances are containedand fiscal consolidation resumed in 2017 after a pause in 2016. Job creation has improvedbut une mployme nt remains high, particularly among the youth. Social tensions increas edin 2017, and in response, the authorities took steps to accelerate local social programsand investment projects. The governm ent appointed in April 2017 remains committed toimplementing sound policies and reforms have resumed. However, the outlook is subjectto signi ficant risks, including geopolitical risks in the region, weaker-than-expected growthin the euro area and delays in implementing key reforms. To achieve higher, sustainable,and more inclusive growth, reform im plementation needs to accelerate, particula rly i n t heareas of governance, the business environment, education, and the labor market.PLL arrangement. In line with the generally positive assessment of Morocco’s policies bythe Executive Board in the 2017 Article IV consultation, staff considers that Moroccocontinues to meet the PLL qualification criteria and recommends the completion of thethird review of the PLL arrangement :
- Morocco’s economic fundamentals and policy frameworks are sound, the country isi mplementing (and has a track record of implementing) generally sound policies, andremains committed to maintaining such policies in the future.
- Morocco meets the PLL qualification criteria, performs strongly in three out o f t h e fivePLL qualification areas (monetary, financial, and data), and does not substantiallyunderperform in the fiscal policy, and external position and market access areas. Theassessment of performance in the external sector was revised downward for thisreview to reflect a weaker-than-expected external position. Morocco does not faceany of the circumstances under which the Fund might no longer approve a PLL
arrangement.
- End-September 2017 quantitative indicat ive targets on the fiscal deficit andinte rnational reserves were met. The authorities have not drawn on the arrangementand continue to treat it as precautionary