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The CMC publishes a note on the “disinflationary process”

The Moroccan Economic Center (CMC) published on Tuesday the 49th issue of its publication “Info-CMC”, entitled “Disinflationary process: when will the monetary grip be loosened”.

This issue looks at the impact of market disruptions and geopolitical instability on inflation, the reframing of the policy mix to alleviate inflationary pressures, and the easing of monetary conditions for the revival of investment and support for economic activity.

Thus, the CMC emphasizes that the economic cycle presents a unique configuration at the international level, marked, on the one hand, by sluggish growth with its implications for income and employment and, on the other hand, by a tendency to the easing of inflationary pressures.

Reacting to the wave of soaring prices triggered following major disruptions in supply chains, but also the instability of the raw materials and energy markets, the policy mix arbitrages adopted in a somewhat synchronized manner everywhere in the world have chosen as a priority objective the rapid return to greater price stability, specifies the research center.

The same source notes, in this sense, that the reframing of the policy mix centered on controlling the inflationary process for almost two years seems to have produced the expected effects, with an increase in prices which is gradually moving towards its target of balance.

And to note that relaunching the growth dynamic is essential in current conditions to push the economy towards its best production potential and meet multiple expectations in terms of employment, social progress and inclusion.

“Morocco is committed for the coming years to vast projects, at the forefront of which are the development of large-scale economic and social infrastructures, in addition to the social protection program,” recalls the Center, adding that these projects involve large-scale investments whose financing can only be ensured sustainably in the long term through a dynamic of regular, more intense and more inclusive growth.

Thus, the progressive consolidation of public accounts observed since 2023 and the restructuring of the State’s shareholder policy contribute to the expansion of budgetary room for maneuver for increased commitment to economic dynamics, through the public investment effort. aimed at establishing conditions more conducive to business and risk-taking.

The other equally decisive aspect concerns the financing conditions which can constitute a real handicap for the company and for which the guidelines adopted in terms of monetary policy can play a decisive role.

From this point of view, and taking into account the disinflationary process initiated since the beginning of the year, the loosening of the monetary stranglehold, which is becoming urgent, can be of great benefit to the dynamics of investment and relaunch of activity, concludes the note.

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