The outlook for Morocco depends on its success in pushing through its reform agenda. Meanwhile risks remain from global economic conditions, and high unemployment.
Economic risk (MEDIUM): The economic recovery is still on track for recovery but with a shallower short-term recovery. The downgrade by Moody’s has put the scal outlook in the spotlight.
Political risk (MEDIUM): Protests over workers’ rights and the crackdown on activists are a reminder of the threat of social tensions. Morocco ranks 100th out of 165 countries in the Democracy Index 2018 by the Economist Intelligence Unit.
Financial risk (LOW): Morocco has rejected a scathing report by Fitch that highlighted weak asset qual- ity and capital adequacy. Banks need to strengthen their capital bu ers to meet new IFRS9 rules.
Commercial risk (MEDIUM): The ease of doing business has improved in a number of facets while none has worsened. Morocco enjoyed a strong in ux of FDI in 2018.