Morocco Regains Investment-Grade Status from S&P Amid Economic Resilience

Standard & Poor's (S&P) has upgraded Morocco's sovereign credit rating to BBB-/A-3 with a stable outlook, restoring its investment-grade status after a four-year hiatus. This upgrade reflects Morocco's economic resilience amid global shocks, including trade disruptions linked to U.S. tariffs, and recognizes the country's strong macroeconomic policies, fiscal reforms, and structural socio-economic improvements. Morocco's real GDP growth is forecast to average 4% between 2025 and 2028, supported by diverse sectors such as construction, manufacturing, tourism, and agriculture, though the economy remains vulnerable to climate-related risks. The budget deficit is expected to narrow to around 3% of GDP by 2026, with public debt gradually declining and the current account deficit remaining contained near 2.1% of GDP. The rating upgrade is expected to enhance Morocco's access to international financing, lower borrowing costs, boost investor confidence, and attract foreign direct investment, particularly in infrastructure and energy projects linked to upcoming major events like the Africa Cup of Nations and the FIFA World Cup. Morocco stands out as the only African sovereign with investment-grade status from S&P, defying a global trend of downgrades among other nations.