Morocco one of the remaining country in the investment grade

Morocco

S&P =BBB- Moody’s =Ba1     Fitch =BBB-

Currently the S&P rates at BBB-, Moody’s at Ba1 and Fitch at BBB-. S&P upgraded Morocco into the investment grade for the time in period reading between 2001 to 2020 in 2010 stating high political stability and the government’s momentum for its programme, including large public works which has raised Morocco’s trend growth prospects and contributed to improve gradually the country’s still weak social indicators. During the same period, Moody’s ratings on the north African country has been constant at Ba1 only outlook had changes. Fitch last updated their ratings on Morocco in 2007 and its been constant since.

In 2019, the public debt constituted 65.11% of GDP, just a pinch of decline of 0.10% from last update of 65.177%. Morocco tax revenue was reported at just under $24 billion in December 2019, an increase from the last update of $23.300 billion in 2018 averaging $7.389 billion between 1980-2019. Contemporary economic ills includes poverty, joblessness and illiteracy particularly in rural areas albeit economic progress. The budget deficit is expected to remain unchanged at 3.6% in 2020 and the world bank reported their GDP to be worth $120 billion, a growth rate of 2.1% year on year with the joblessness advancing to 10.20% in the last Q of 2019. World bank reported that price reformed in Morocco and changes in energy subsidies contributed to improving the business climate in teh country and achieving goals.

In line with the World Bank’s perspective, the IMF cited the Morrocan economy had affirmed the balance despite weak growth of its largest trading partners, high external risks and fluctuations in the cereal sector. The government expects the economy to grow by 3.7%-3.9% in 2020. Morocco had -0.33 of Political Stability Index conducted by theglobaleconomy.com in 2018. The country is actively encouraging and facilitating foreign investment, particularly in export sectors like manufacturing, through macro-economic policies, trade liberalization, investment incentives and structural reforms added the US Report.

After slashing the lending rates to 2% to boost activity earlier this month, the central bank said it would intervene to ensure there is cash for banks through increasing three fold their refinancing capacity in Dirham and hard currency. This effort comes as all central banks across the globe pump funds into the system to counteract the ramifications of the coronavirus which has run through and shook up global markets over the past few months.