The Standard and Poor’s agency maintains Morocco’s rating for “BBB-” in the long run, but with a perspective that goes from “stable” to “negative”. The kingdom should improve its financial situation within 24 months at the risk of losing the so-called investment grade.
In its report of October 5, 2018, the agency said Morocco has moved away from its target of a budget deficit of less than 3% due to growth less strong than expected. The budget deficit stands at 3.8% this year and the current account deficit of the balance of payments at 4.2% of GDP.
Real GDP growth in the country is expected to be no more than 3.2% over the 2018-19 period. S & P forecasts a 4% improvement in 2020 and 2021. The return to the “stable” outlook could take place in the event of progress in fiscal consolidation and transition to a more flexible exchange rate regime, says S & P.
