Morocco's public debt continues to rise, reaching 1190.4 billion dirhams as of June 2026, according to a document from the Ministry of Economy, Finance, and Public Efficiency. This represents a significant increase from 1145 billion dirhams at the end of 2025. The rise is attributed to increases in both domestic and foreign debt. The trend is expected to continue, with projections indicating that the debt will reach 1288.8 billion dirhams by 2027.
By 2027, Morocco's public debt is expected to account for 66.9% of the country's Gross Domestic Product (GDP). The debt is projected to be comprised of 901 billion dirhams in domestic debt and 387.8 billion dirhams in foreign debt. This represents 69.9% and 20.1% of the GDP, respectively. The majority of the debt, 72%, is denominated in dirhams, while 27.6% is in foreign currencies.
The average remaining maturity of Morocco's public debt stood at 7 years and 10 months as of June 2026. The cost of servicing this debt is substantial, with interest payments expected to reach 45.9 billion dirhams in 2027. This includes 32.3 billion dirhams for domestic debt and 13.7 billion dirhams for foreign debt. Additionally, 69.4 billion dirhams are expected to be allocated towards repaying medium- and long-term debt maturing in 2027.
The increasing public debt has significant implications for Morocco's economy. The country's reliance on debt to finance its activities may impact its fiscal sustainability. The government must carefully manage its debt to avoid potential risks and ensure that debt servicing costs do not become unsustainable.
Morocco's public debt has been rising steadily over the years, driven by various factors, including large budget deficits. The government has been implementing measures to reduce the deficit and promote economic growth. However, the COVID-19 pandemic and other external factors have complicated these efforts.
The Ministry of Economy, Finance, and Public Efficiency is responsible for managing Morocco's public debt. The ministry works closely with other government agencies and international organizations to ensure that the country's debt is managed effectively. This includes monitoring debt levels, developing debt management strategies, and engaging with investors.
The Moroccan government's ability to manage its public debt will be crucial in maintaining economic stability and promoting growth. The country's economic prospects are closely tied to its ability to manage its debt and implement structural reforms. Key stakeholders, including investors and international organizations, will be closely monitoring the situation.
Key points
- Morocco's public debt is projected to reach 1288 billion dirhams by 2027.
- The cost of servicing Morocco's public debt is expected to reach 45.9 billion dirhams in 2027.
- The majority of Morocco's public debt, 72%, is denominated in dirhams.
