Moody’s affirmed Morocco’s credit rating at Ba1, noting a balance of strengths and challenges. Morocco has effective policies and a strong domestic financing base, but faces low-income levels and risks in the public and banking sectors. Economic growth slowed to 2.6% in 2024 due to weak rainfall affecting agriculture, down from 3.4% in 2023. Analysts expect a rebound to 3.5% in the medium term, driven by structural reforms. The budget deficit was 4.3% of GDP, slightly better than expected, while the current account deficit remained stable at 2.5% of GDP, supported by tourism, exports, and remittances.