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 and may benefit from relaxation of its currency regime. It is vulnerable to negative changes in the global economy and financial system.
• Political risk (MEDIUM): The successful formation of a government under Saadeddine El Othmani ends months of political stalemate while more than 1,000 Moroccans were arrested in a protest against “repression”.
• Financial risk (LOW): The banking system is robust and well capitalised although non-performing loans are rising. Exposure to SSA is a risk.
• Commercial risk (MEDIUM): The ease of doing business has improved in a number of facets, building on massive improvements since the turn of the decade. However FDI flows have fallen from 2015’s highs.