Growth is expected to slow down compared to 2017 but should stabilise at around 3% this year and in 2019. Several years of fiscal consolidation have borne fruit. The public deficit is expected to improve again, but is unlikely to fall below 3.5% of GDP. The current account is expected to deteriorate slightly, and in an environment of declining external financing, could hamper the dirham’s move to a flexible exchange rate regime. But all in all, even though Morocco needs some major structural reforms to support inclusive growth, in the short term the macroeconomic situation is solid and risks are moderate.