The International Monetary Fund has reported that Maroc has had a rough first three quarters, with the economy contracting by 2.4% in the first quarter, with inflation running at 10.6%.
This is the first time in two years that the government has posted such a sharp decline.
The news is not good news for the government, which has seen its deficit balloon by 10.4%, with inflation hitting 10.7%.
In the three months ending December 31, Maroc posted a contraction of 5.3%, a fall of 2.1% compared to the same period last year.
Maroc said its GDP fell by 2%, and inflation dropped by 0.2%.
It said the decline in its GDP would lead to an increased risk of a severe shock to the economy.
The government’s GDP growth has been in decline since 2010, and the country’s fiscal deficit is forecast to be above 30% of GDP this year, up from 28.2% in 2019.
However, the government is on track to post a surplus for the next fiscal year, which begins in January 2019, with growth set to be even higher than expected.
It said it expects the deficit to fall further, and that the economy is expected to grow by around 2% this year.
However, its fiscal balance will still be over 30% this time next year, and it will need to find extra funds to meet its deficit obligations.
Maroc is the second-biggest economy in South Africa, and accounts for just under 30% the countrys GDP.
Its GDP grew by 1.5% in 2017, but has been on a downward trajectory since then.