Morocco allocates $2B to offset war impact

RABAT, Morocco (MNTV) — Morocco plans to inject an additional $2 billion into its 2026 state budget to help shield the domestic economy from the impact of the ongoing Middle East conflict, according to Reuters citing a government source.

The source said the extra funding would be used to support emergency economic measures as disruptions to global energy supplies continue to affect import-dependent countries such as Morocco.

Government spokesperson Mustapha Baitas confirmed that new reserve funds would be added to the budget, although he did not publicly disclose the total amount during remarks to reporters.

Morocco imports most of its oil, gas and coal and lacks domestic refining capacity, making the country particularly vulnerable to energy market instability caused by the regional conflict.

Officials said the additional funding would help maintain subsidies aimed at keeping prices of cooking gas, electricity and public transportation stable while protecting household purchasing power.

The government also plans to use part of the funds for recovery efforts linked to floods that struck northern Morocco during the winter, as well as other unforeseen expenses tied to global economic pressures.

Despite inflationary challenges and rising import costs, Moroccan authorities expect the economy to grow 5.3% this year, up from 4.6% last year, helped by improved agricultural output after heavy rainfall ended years of drought conditions.

The government also expects the fiscal deficit to narrow to 3% of gross domestic product this year while public debt is projected to decline to 66% of GDP.

Last month, Budget Minister Fouzi Lekjaa said state subsidies used to stabilize electricity tariffs and transport prices were costing the government around $70 million per month.