Economy

Morocco reports fiscal surplus in first quarter

May 2, 2025, 10:28 AM

Morocco returned better than expected results in the first quarter of 2025

An increase in revenues on the back of higher direct taxes turned a projected fiscal deficit in Morocco into a surplus in the first quarter of 2025, according to official data.

Revenues swelled by a fifth after direct taxes increased by 40 percent and indirect taxes grew by 10 percent, the General Treasury said.

A positive ordinary balance of MAD 10.7 billion ($1 billion) and a budget surplus of $634 million were achieved in the first quarter, it said.

In April the International Monetary Fund approved a new credit facility for Morocco to help in crisis prevention and to support reform.

The two-year $4.5 billion flexible credit line will help rebuild buffers and accelerate structural reforms, the IMF said.

Last year Morocco’s parliament endorsed the budget for fiscal year 2025, which started on January 1, with spending forecast at $77 billion and revenues at $71 billion. The deficit was projected at $6.3 billion, slightly lower than the 2024 shortfall and nearly 3.5 percent of GDP.

Nadia Fettah, Morocco’s minister of economy and finance, said last month that budgetary programming for 2025-2027 will focus on reducing the budget deficit and ensuring long-term debt sustainability while maintaining social protection.

Fettah said the government is looking to lower Morocco’s debt ratio to below 67 percent by 2027.

Morocco is rated at sub-investment grade BB+ by S&P and Fitch and at Ba1 by Moodys. S&P has the kingdom on positive outlook.