Morocco cut the cost of subsidies to 4.7% of GDP for 2013, from 6.6% for 2012. Subsidies are set to fall further, to 3.7% of GDP this year bringing the country’s budget deficit below 5% of GDP. This, the result of policy measures undertaken in 2012 and in 2013, has lowered Morocco’s economic vulnerabilities, the IMF says in a report on the country released earlier this month.

In absolute terms, subsidies will cost MD35bn ($4.1bn) this year from MD42bn ($4.9bn) in 2013. Both the cost of subsidies and the budget deficit are predicted to fall below 3% of GDP by 2017 (see graph). (CONTINUED - 736 WORDS)