Post: Morocco Projects Stable Economic Growth, Fiscal Consolidation by 2026

Morocco: Moroccan Minister of Economy and Finance Nadia Fettah Alaoui projected that her country's economic growth will remain stable at 4.5 percent in 2026, unchanged from this year. Speaking before members of parliament, Alaoui stated that the fiscal deficit is expected to shrink to 3 percent of GDP by 2026, down from the projected 3.8 percent this year. She also noted that inflation is anticipated to rise slightly to 2 percent in 2026, compared to 1.9 percent forecast for the current year. According to Qatar News Agency, the minister highlighted that implementation of the Finance Law for 2025, preparation of the 2026 draft Finance Law, and the three-year budget programming are taking place amid ongoing global uncertainty, driven by persistent geopolitical tensions and a slowdown in global economic growth. Alaoui emphasized that Morocco's government is committed to executing strategic priorities and accelerating major reforms. She further explained that budget planning over the next three years focuses on reducing the deficit to 3 percent of GDP. Based on this fiscal trajectory, public debt is expected to continue its downward trend in the medium term, declining from 67.7 percent of GDP in 2024 to approximately 64 percent by the end of 2028. This approach aims to enhance debt sustainability and restore financial margins.