Gulf Daily News
RABAT: Morocco expects inflation to hold steady at two per cent this year and economic growth to slow slightly to 4.2pc from 2013, Finance Minister Mohamed Boussaid said yesterday.
The country also expects its budget deficit to narrow to 3.5pc of gross domestic product by 2016, Boussaid said.
Morocco has previously said its decision to raise energy prices, the first of a series of reforms to subsidies required under a deal with the International Monetary Fund (IMF), would hurt economic growth in 2014 by slowing domestic demand.
The government estimates inflation in 2013 at 2pc and annual economic growth at 4.8pc. The IMF, which approved a $6.2 billion credit line for Morocco two years ago, has pushed Rabat to overhaul its fuel subsidy regime and tighten control of public wages to bring down the budget deficit.
