African Development Bank (Morocco)

The economy continues to show resilience. Although slowing, real GDP growth was positive at an estimated 3.1% in 2018, down from 4.1% in 2017, reflecting less rainfall. The fiscal deficit, an estimated 3.9% of GDP in 2018, up from 3.7% in 2017, is expected to gradually shrink under fiscal consolidation, tax reform, the rationalization of public expenditure, and more effective collection of tax revenues. The medium-term economic outlook projects a continuing decline in real GDP growth, to 2.9% in 2019, before a rebound to 4.0% in 2020. The projected slowdown in 2019 is attributable to a slight decline in primary sector value added.