Foreign exchange reserves cover 6 months of imports, budget deficit projected at 5.3% of GDP in 2022

The Kingdom’s public finances have improved significantly despite economic indicators, government spokesman Mustapha Baitas said on Thursday.

During the press conference at the end of the Council of Government held this Thursday in Rabat, Mustapha Baitas, Minister Delegate to the Head of Government and spokesperson for the Executive, specified that the rate of the budget deficit for the year 2022 will reach 5.3% of the Gross Domestic Product (GDP), noting that ” the goal is to control this budget deficit over the next few years and bring it down “.

The government official also noted a marked improvement in this budget deficit, which fell by 0.6% compared to last year.

As for the question on the foreign exchange reserves currently available in the Kingdom’s treasury, Mustapha Baitas, clarified that ” currency inflows and the improvement of the tourism sector, had a positive impact on the import of foreign currency“, noting on this occasion” the contribution of MRE (Moroccans residing abroad) which has reached significant figures“, before specifying that” forecasts suggest that these numbers will increase significantly over the next few years“.

In this sense, the government spokesperson specified that the current foreign exchange reserves make it possible to maintain a level of coverage of 6 months of national imports.

The reforms carried out by the government this year, and the reasonable subsidies granted to several sectors have enabled good control of public finances, which will enable us to be eligible to benefit from the IMF’s Precautionary and Liquidity Line (PLL), whose financing, beneficiaries and its use will be largely devoted to the implementation of the project of the generalization of social coverage that the government applies according to royal directives in this area“, concluded Baitas.

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