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Weekly highlights

Inflation and Monetary Policy

IMF and BAM in Agreement

n Both institutions forecast a central bank will closely monitor eco-
growth rate of approximately nomic conditions and make decisions
on a meeting-by-meeting basis, using
3.9% in 2025 the latest available data. Its next mee-
ting is scheduled for March 18, 2025.

n Strong domestic demand and What about the recent reforms of the
tax system and tax administration? Ac-
a new investment cycle as key cording to the IMF, they have helped

drivers broaden the tax base while reducing the
overall tax burden. As a result, tax reve-
nues in 2024 exceeded expectations,
n Solutions to sustain the finan- with the central government deficit
cing of structural reforms reaching 4.1% of GDP, slightly lower

3%, a level closer to its normal range, summarizing these discussions was than the 4.3% deficit projected in the
2024 budget. Although the 2025 budget
ROWTH, inflation, employ-
G ment... The IMF has released compared to its current low levels. published on February 10, 2025. maintains a gradual approach to fiscal
Meanwhile, inflation is projected to
With inflation expectations anchored
consolidation, any additional revenue
its forecasts for the Moroccan
economy. They are generally optimis- stabilize at 2%. This economic acce- at around 2% and limited signs of de- should be used to accelerate debt reduc-
leration is fueled by vigorous domestic
mand-driven pressures, the IMF consi-
tic. Economic activity is estimated demand and a new investment cycle ders the current neutral stance of mone- tion, bringing it closer to pre-pandemic
to have expanded by 3.2% in 2024, across multiple sectors. However, risks tary policy to be appropriate. The fund levels. To continue financing structural
reforms, further efforts may be required
with further acceleration to 3.9% in to this outlook remain balanced, with agrees with Bank Al-Maghrib that any to broaden the tax base and streamline
2025—a forecast aligned with that of significant uncertainty surrounding the future adjustments to the policy rate expenditures. This includes: reducing
Bank Al-Maghrib (BAM). Growth is economic impact of geopolitical ten- should remain data-dependent. transfers to state-owned enterprises
expected to be driven by a rebound sions and climate change, according to As inflation has now returned to around (SOEs) as part of the ongoing public
in agricultural production following an IMF team led by Roberto Cardarelli. 2%, BAM is encouraged to continue sector reform and expanding the use of
recent droughts and sustained expan- Between January 27 and February 7, preparing for a transition to an inflation- the Unified Social Register to all social
sion in non-agricultural sectors, sup- this team engaged in discussions with targeting framework. In its meeting on programs. o
ported by strong domestic demand. A Moroccan authorities and Bank Al- December 17, 2024, BAM’s board de- Fatim-Zahra TOHRY
more robust economy is likely to push Maghrib as part of the 2025 Article cided to cut the policy rate by 25 basis
the current account deficit to around IV consultations. A detailed statement points to 2.50%. Moving forward, the
Highway code: Tackling Traffic Violations

Blocking tramway tracks, pedes- of modifications to the existing regu-

trian crossings, and bus stops will lations. Notably, it permits holders of
a category B driver’s license to ope-
now be penalized rate vehicles requiring an A1 license,
provided they complete a specialized
Technology-enabled enforcement training program at an accredited dri-
ving school. Moreover, individuals
for traffic violations obtaining an AM category license will
be subject to a two-year probationary
T HE government is set to restore period.
order on the roads. Nearly 15
Certain provisions specifically target
years after the enactment of
the 2010 version of the Road Code, the cycles have been incorporated into the all available technological tools to de- two-wheeled vehicles, whose riders are
tect and document traffic violations.
frequently criticized for traffic disrup-
definition of vehicles. Additionally, this
Ministry of Transport has introduced legislation paves the way for utilizing The new framework introduces a range tions. For instance, failure to wear a
a new reform of this crucial legal fra- helmet will now result in the immobili-
mework. A draft bill has been submit- Violations zation of the motorcycle. Furthermore,
ted for public consultation. occupying pedestrian crossings, tram-
The main objective of this reform is to HE revised Road Code also introduces stricter penalties for way tracks, railway crossings, and bus
«address the shortcomings identified professional transport operators carrying passengers or goods. stops with motorcycles will be classi-
after a decade of implementation on the T Conducting transport activities without prior authorization from fied as a first-level violation. According
ground,» according to the introduction the relevant authorities will be punishable by fines. Additional infractions to Article 184, offenders will face a fine
of the proposal. The new provisions include obstructing a vehicle’s signal lights or license plate with cargo of 1,400 MAD. Additional measures
also aim to adapt to technological ad- or carrying loads that hinder the driver’s visibility. Furthermore, the new aim to curb traffic violations across all
vancements. For instance, new vehi- rules apply to all drivers, prohibiting vehicles from stopping on pedes- vehicle types, including motorcycles,
cle categories such as electric bicycles, trian crossings, dedicated two-wheeler lanes, bus stops, etc. o scooters, three-wheelers, and cars. o
electric scooters, and electric motor- Mohamed Ali Mrabi

Friday 14 February 2025