-L’Economiste: This is your second visit to Morocco as Managing Director of the IMF. What was the purpose of it?
-Kristalina Georgieva: First of all, let me tell you how happy I am to be back in this beautiful country. Morocco gives me energy and hope. I look forward to returning to Marrakech in October for the annual meetings of the IMF and of the World Bank, a key event for Morocco and the international community.
My visit had a twofold purpose. First of all, I wanted to discuss with the Moroccan authorities but also with Moroccans from all walks of life on issues that are important to them, to the region, and to the world. I also wanted to experience personally the preparations for our annual meetings. I also participated in an event jointly organized by the IMF and Bank Al-Maghrib on the implications of the adoption by central banks of their own digital currency. This is a subject that we follow closely at the IMF and which should generate more interest in the future.
-What results do you expect from the annual meetings in Marrakech?
-These Meetings are of particular importance insofar as the world economy is still facing major difficulties and where geopolitical tensions are increasingly felt. They will bring together thousands of policy makers, private sector leaders, and civil society representatives from around the world to foster dialogue and action on some of the most pressing issues facing us. We live in a world that is more exposed to shocks. If there is one thing to remember from the events of the last three years, the pandemic, the war in Ukraine, and the cost-of-living crisis, it is that it is necessary to prepare for all contingencies. It is therefore essential to emphasize the importance of international cooperation to rebuild economic resilience and ensure the implementation of transformational reforms in all our member countries.
-More concretely…
-Our ambition is also to think about pragmatic solutions in areas where no country can act alone, whether it is mitigating the effects of climate change, helping low-income countries and vulnerable countries to restructure their debt, or promoting world trade. We will also discuss the challenges and opportunities related to the digital transition and artificial intelligence, as well as the need to adopt more inclusive development models, an issue particularly relevant for the Middle East and North Africa region.
- Is Africa on the agendas?
-Obviously. We want to emphasize Africa’s importance in the global economy and the potential for deeper trade and financial integration across the continent.
During these annual meetings, it is not only a question of bringing the whole world to Morocco, but also of showcasing Morocco to the whole world. Marrakech 2023 will be an extraordinary opportunity for Morocco to take center stage. Located at the crossroads of Africa, the Middle East and Europe, Morocco exemplifies the fact that it is possible to establish trade links and investment flows in a fragmented world. The meetings will highlight the strengths of the “Made in Morocco”, the country’s increasingly important place in the region and in the world, as well as its determination to carry out economic reforms and promote stability.
-How does the IMF analyze Morocco’s economic situation?
-The Moroccan economy has proven resilient to a series of negative shocks recorded since 2020: the pandemic, the economic fallout from Russia’s war in Ukraine, and two severe droughts, in 2020 and 2022.
The measures taken by the Moroccan authorities in terms of fiscal, monetary, and financial policy have been appropriately calibrated, which has made it possible to preserve macroeconomic stability, while protecting the most vulnerable populations against the effects of these shocks.
For 2023, we expect economic growth to pick up slightly, driven by strong tourism and exports, although relative water scarcity should prevent agricultural production from returning to its average level. We also expect inflation to ease slightly, as the effects of shocks to commodity prices and production costs gradually fade, and thanks to Bank Al-Maghrib’s vigilant monetary policy.
- Thank you very much, Madam Director General. We look forward to seeing you again in Morocco in October for the annual meetings of the IMF and of the World Bank.
-We are counting the weeks and the days. I invite your readers and Moroccans from all walks of life to consider themselves stakeholders in this event.
Leaders from around the world who will gather at the Annual Meetings in Marrakech will reflect on the global challenges we face together. I sincerely hope that our exchanges during this event will inspire other debates elsewhere, in the cities of Morocco and the rest of the world, on the urgency of bringing people together and achieving our common goals in unity.
Interview by Mohamed CHAOUI
“If we want to tackle global challenges, we have to work together”
“In addition to the very strong commitments we have made with the authorities for the annual meetings and with the senior leaders on the digital currencies of the central bank, I had the opportunity to meet many Moroccans who work with energy and dedication for their country”, says Kristalina Georgieva. Thus, her journey allowed her to talk with staff members of the Ouarzazate solar power plant. “I was very impressed with what they were able to accomplish. This plant attests to Morocco's vast potential in terms of renewable energies and its leadership in this field ”, she explained.
During her stay, she also exchanged views with several hundred students from five Moroccan universities. “We talked about their hopes and aspirations for the future. I had the opportunity to personally thank them for signing up as volunteers for our annual meetings . and raise the bar with their innovative ideas and determination to succeed. They represent a source of inspiration for all ”. One of the steps that “enchanted” the IMF Managing Director was the meeting with “some of the extraordinary Atlas Lions (of the Moroccan soccer team) ”. For her, “they galvanized the world with their performance at the FIFA World Cup last year. I wanted to personally thank them for reminding us all that with effort, teamwork, and determination, no challenge is insurmountable. This is the message I wish to convey at the Annual Meetings next October. If we are to meet the global challenges we face, we must work together, fully confident that we can succeed”.
