According to Capital Economics, despite concerns about Morocco’s widening budget deficit and high debt-to-GDP ratio, the country’s economic outlook remains relatively positive due to the government’s commitment to structural reforms. Public debt-to-GDP rose from 69.5% in 2021 to 71.5% in 2022. Only around a quarter of Morocco’s central government debt is in foreign currency, and most upcoming debt repayments are in local currency. Additionally, the average maturity of public debt stands at 6.5 years, providing some insulation against sudden interest rate changes. The think tank projects that if the Moroccan government enacts a fiscal squeeze of 1.5% in the coming years, the public debt-to-GDP ratio could fall to 67% by 2027.