Moody’s has recently confirmed Morocco’s long-term issuer and senior unsecured debt ratings at Ba1, keeping a stable outlook for the country. Despite rising expenditures on social security reforms and infrastructure projects, the Moroccan government is expected to maintain a steady debt burden.
With a strong governance and institutional framework, Morocco shows economic resilience. The central bank, Bank Al-Maghrib, plays a crucial role in maintaining price stability. Fiscal policies aim to balance discipline with social pressures, projecting public debt stabilization at around 65% of GDP.
Challenges such as low income levels and socio-economic disparities persist in Morocco, reflecting in lower per capita income compared to the Ba1 median. Informal employment rates, youth unemployment, and low female labor market participation remain concerns for inclusive growth.
The stable outlook reflects balanced risks around the baseline scenario, with potential risks from limited economic liberalization and state-dominated oligopolies. Successful reforms could improve credit metrics, while environmental risks like water scarcity impact the credit profile.
Moody’s reaffirmation of Morocco’s ratings indicates no significant changes in the country’s economic outlook, highlighting the importance of future economic reforms to enhance income levels and job creation.