Rabat – Morocco’s Minister of Economy and Finance, Nadia Fettah, announced that the government plans to revise its upcoming budget to prioritize increased spending on health and education, while also allocating additional resources to address social inequalities.
This move follows weeks of GenZ protests across the country, driven by frustrations over poverty, unemployment, and declining public services.
The protests, which began in late September under the banner of GenZ 212, were sparked by young Moroccans demanding better healthcare, education, job opportunities, and greater government transparency and accountability.
Although largely peaceful, the movement has spread to major cities such as Rabat, Casablanca, Agadir, and Tangier. Protesters have expressed discontent with the government's focus on infrastructure and stadium projects ahead of the 2030 FIFA World Cup, co-hosted by Morocco, Spain, and Portugal, while neglecting key public sectors.
“What we have heard from the youth protests is their call for better education and healthcare,” Fettah Alaoui said during the IMF and World Bank Annual Meetings in Washington earlier this week. She noted that current government spending on both sectors is just under 9% of the country's GDP.
Fettah emphasized that there is flexibility in the budget to adjust priorities, such as developing local hospitals to ensure citizens are not forced to travel long distances for medical care.
“We will reallocate funds to achieve short-term, rapid improvements because people cannot wait for long-term reforms,” she said, adding that specific details will be revealed once the draft budget is presented to Parliament, typically after late October. “This may require additional funds, but it will strengthen coordination without compromising macroeconomic stability,” Fettah explained.
When asked about Morocco's foreign exchange plans, Fettah mentioned that the ministry intends to set a medium-term inflation target, expected to be announced by late 2026 or early 2027, likely between two and three percent. Currently, Morocco only sets annual inflation targets.
“Liberalizing the exchange rate is another step,” Fettah continued, acknowledging that while large corporations are ready for such a move, small and medium-sized enterprises are not yet prepared. “The financial sector could be at risk, so we need to take time to organize domestically before moving forward,” she added.
Regarding sovereign bond issuance, Fettah stated that Morocco has no immediate plans to return to the international market, but the country will continue issuing bonds on a regular basis.