Morocco: A Credit Default Level Lower than Global and Regional Averages, According to International Data

Morocco showcases particularly favorable credit risk indicators, with default rates lower than global and regional averages for both private and public sector funding. This data comes from the Global Emerging Markets Risk Database (GEMs), an international benchmark in credit risk analysis.

According to this report, co-led by the European Investment Bank (EIB) and the International Finance Corporation (IFC), Morocco stands out for its better control of non-repayment risk compared to many emerging markets.

Controlled Credit Risk in the Private Sector

Statistics reveal that the average default rate for loans granted to the private sector in Morocco is approximately 2.05% for the period from 1994 to 2024. This rate remains below the global average of 3.54% and that of the Middle East and North Africa (MENA) region, which stands at 3.39%.

These performances reflect a certain resilience within the Moroccan economy, especially in a global context characterized by successive crises and significant economic fluctuations.

A Low Risk Profile in the Public Sector as Well

On the public funding side, Morocco records an average default rate of 1.18%, compared to a global rate of 2.61% during the same period. This performance confirms a relatively stable management of public commitments and a better repayment capacity relative to the international average.

A Positive Signal for Investors

These results enhance Morocco’s attractiveness to international investors, particularly in a context where emerging markets are often perceived as higher risk.

Data from the GEMs consortium also highlight that Morocco’s performances are part of a broader dynamic of economic stabilization and strengthening of macroeconomic fundamentals.

A Strong Position in Emerging Markets

In a global environment still marked by geopolitical and financial uncertainties, these indicators position Morocco as a relatively stable and competitive market in terms of credit risk.

This situation bolsters the confidence of funders and international financial institutions in the projects and investments made within the Kingdom.