Inflation, driven by food prices, would stand on average at 6.1% this year, down from 6.6% last year
Morocco’s central bank said it left its benchmark interest rate unchanged at 3% on Tuesday to keep prices stable.
Inflation, driven by food prices, would stand on average at 6.1% this year, down from 6.6% last year, the bank said in a statement following its quarterly board meeting.
In 2024, inflation would further drop to 2.4%, on the back of an expected fall in prices of imported goods and stability of food prices.
Assuming an average cereals harvest, growth would improve to 3.4% next year, after 2.1% expected this year.
An increase in car exports, tourism receipts and remittances of Moroccans abroad would keep foreign exchange reserves at $35.8 bln in 2024 and $36.8 bln in 2025, enough to cover five months of import needs.
Despite a rise in spending on social safety nets, the bank expects the fiscal deficit to narrow to 4.5% of GDP next year, and 3.9% in 2025, from 4.8% this year.
Source: Zawya
