Morocco has regained its investment-grade status from S&P Global Ratings after a four-year interval, a significant development for the North African nation’s investment landscape. The agency upgraded Morocco’s long- and short-term sovereign credit ratings to ‘BBB-/A-3’ from ‘BB+/B’, while maintaining a ‘stable’ outlook. This move distinguishes Morocco as the only sovereign nation in Africa to currently hold an investment-grade status from S&P.
A Resilient Economic Performance
According to the rating agency, the upgrade reflects Morocco’s demonstrated economic resilience in the face of consecutive global shocks. S&P highlighted the country’s effective policy mix and a strong momentum in structural socioeconomic and budgetary reforms. These ongoing efforts are expected to continue formalizing and diversifying the Moroccan economy, bolstering its outlook. Despite its strengths, the country remains vulnerable to climate-related risks that could impact its agricultural sector.
Positive Fiscal and Growth Outlook
S&P projects a robust economic trajectory for Morocco, with real GDP growth forecasted to average 4% between 2025 and 2028. On the fiscal front, the budget deficit is anticipated to narrow to 3% of GDP by 2026, driven by higher government revenue, which will support a gradual reduction in the general government debt-to-GDP ratio. The current-account deficit is also expected to remain contained, averaging 2.1% of GDP over the 2025-2028 period.
Mega-Projects Fueling Growth
A key driver of future economic activity will be major infrastructure investments, particularly those related to Morocco co-hosting the Africa Cup of Nations in 2025 and the FIFA World Cup in 2030. Furthermore, Morocco’s strategic geographic position between Europe and sub-Saharan Africa is poised to attract additional trade flows. The nation also benefits from more favorable effective levies at 13.6% and limited direct exposure to the US, insulating it from some global trade instabilities.
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Source: AGBI
