Morocco Deficit to Decrease Gradually

Morocco is expected to decrease over the next ten years its current deficit with limited risk to its external finances, Morocco World News reported. “Morocco’s current account deficit will narrow gradually over the coming decade thanks to strong exports of manufactured goods and tourism services. Meanwhile, external stability will be aided by relatively large foreign direct investment stocks and small amounts of short-term debt,” according to Fitch Solutions Macro Research in their August 2 report. “Meanwhile, external stability will be aided by relatively large FDI stocks and small amounts of short-term debt,” the report said. While Morocco’s financial debt to the global system will be long term, a result of “persistent current account deficits,” Fitch believes “risk of a balance of payments crisis will remain low.” While Morocco’s FDI stocks and low-volatility accounts are dominant and hence stabilizing its net external liabilities, it’s Net International Investment Position remains negative. The kingdom has become increasingly attractive to businesses and its politics have remained relatively stable, garnering more attention from foreign investors.