International Monetary Fund. External Relations Dept.
Morocco has started to reap the benefits of its reform efforts, but raising living standards to the level observed in other emerging economies still constitutes a challenge. Macroeconomic conditions continue to strengthen and the 2006 outlook is favorable. A bumper wheat crop and strong activity in services and construction are ushering in a recovery, following a slowdown in growth caused by bad weather in 2005. Inflation remains low.