Morocco is preparing to inject an additional 20 billion dirhams (about $2 billion) into its 2026 budget as it moves to shield its economy from the fallout of the Middle East conflict.
Government spokesperson Mustapha Baitas confirmed the plan, saying the funds would be used to cushion households and stabilise key sectors facing rising costs linked to global energy disruptions.
The North African country is particularly exposed. It imports the vast majority of its energy needs and lacks domestic refining capacity, leaving it vulnerable to price spikes triggered by geopolitical instability.
The new funding will be channelled into subsidies aimed at keeping the cost of cooking gas, electricity and public transport stable, a central concern as inflation pressures continue to squeeze household budgets.
Officials say the budget adjustment is also designed to build a financial buffer in case the conflict drags on. Beyond energy support, part of the allocation will go toward recovery efforts following floods that hit northern regions earlier this year, as well as other unforeseen economic pressures.
Despite the strain, Morocco’s economic outlook remains relatively optimistic. Authorities expect growth to reach 5.3% this year, up from 4.6% previously, driven largely by a rebound in agriculture after years of drought.
Finance projections also point to gradual fiscal consolidation. The government aims to reduce the deficit to around 3% of GDP while lowering public debt to 66%, supported by stronger tax revenues and improved economic activity.
Still, the cost of intervention is significant. Budget Minister Fouzi Lekjaa recently said subsidies to stabilise transport and electricity prices are already costing hundreds of millions of dirhams each month.
The latest move reflects a balancing act familiar to many import-dependent economies: protecting citizens from global shocks while trying to keep public finances under control.
