Morocco only country in North Africa with low economic risk, Euler Hermes Survey
In its most recent quarterly survey of 250 countries, credit risk insurance specialist Euler Hermes ranked Morocco as the only country in the “low-risk” category in the short and medium term in North Africa, and one of only three in Africa.
The rating is based on monitoring “macroeconomic imbalances, the business environment, and the stability of the political system,” according to the firm.
In its analysis under the heading “It’s oh so quiet,” Euler Hermes lists key “strengths” in the country, including the leadership and popularity of King Mohammed VI; “sound commercial and diplomatic relations with the U.S. and the EU;” the economy’s resilience in the face of last year’s devastating drought; its central geographic location near to very large potential markets; and its debt service management.
The report describes Morocco as “an island of tranquility” with a solid basis for continued growth and progress, benefiting from existing strong trade ties, geographic location, and a growing capacity for regional business leadership.
The survey pointed out that “the prudent policy-mix, as well as good management of foreign exchange reserves” underpinned the economy’s resilience.
With good harvests anticipated, Euler Hermes predicts GDP growth of 4.5% in 2017, encouraged by the diversification of the economy, through both better agricultural management and use of fertilizers, and the steady growth of the industrial and services sectors.
“It is no coincidence that Morocco continues to win recognition as a trade and investment platform for Africa,” said former US Ambassador to Morocco Edward M. Gabriel. “King Mohammed VI’s vision and economic diplomacy for the past 16 years and the evolving business-friendly government policies make it ideal for international companies and investors.”
The Moroccan American Center for Policy (MACP) is a non-profit organization whose principal mission is to inform opinion makers, government officials, and interested publics in the United States about political and social developments in Morocco and the role being played by the Kingdom of Morocco in broader strategic developments in North Africa, the Mediterranean, and the Middle East.