MENA Asset Management Survey 2012 - National Bank of Abu Dhabi

Morocco
Economic Background
Slowdown in 2012
Morocco’s economy has been adversely affected by the slowdown in the Eurozone,
high oil prices, and lower agricultural output. Real GDP growth is estimated at 3% in
2012, down from 5% in 2011. Nominal GDP is estimated at US$ 97 billion in 2012,
according to the IMF.
Grappling with twin deficits
The country is estimated to have registered a current account deficit in excess of 8%
of GDP in 2012. IMF has advised a more flexible exchange rate regime against a
background of the large external deficit and foreign currency reserves equivalent to
about four months of imports. Morocco engaged in an IMF precautionary and liquidity
line arrangement amounting to US$ 6.2 billion in August in 2012.
The country has undertaken an adjustment plan including an increase in the price of
subsidised goods. Morocco is expected to register a budget deficit equivalent to just
over 6% of GDP. The fiscal consolidation aims to reduce the deficit to about 3% of GDP
in the medium term. Public debt remains at a manageable level at 58% of GDP.
In 2013, real GDP growth is forecast to pick up to about 5%. Forecasts point to a
current account deficit of about US$ 6 billion (5% of GDP) and budget deficit equivalent
to about 5% of GDP in 2013.
Overview
As of June 2012, there were 19 banks - 6 listed -, 36 finance companies, 6 offshore
banks, 13 micro-credit institutions, and 12 other entities providing financial services in
Morocco.
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