Morocco Faces Record $7 Billion Debt Service in 2024, Says World Bank

In 2024, Morocco finds itself at the forefront of a global challenge, as the country grapples with a record $7 billion in debt service repayments. This noteworthy figure was highlighted in the International Debt Report 2025, which underscores a paradigm shift in global debt dynamics as borrowing slows, but repayment burdens intensify.

Global Debt Trends Affecting Morocco

The broader global context paints a challenging but clear picture: by 2024, low- and middle-income countries, including Morocco, saw a marked slowdown in external debt growth to a mere 1.1%, reaching a towering \(8.9 trillion. Despite this deceleration, interest payments escalated dramatically, reaching a historical peak of \)415.4 billion. It’s not new loans exerting pressure, but the escalating costs of servicing existing debts.

Morocco’s Debt Landscape in Focus

Amidst these international dynamics, Morocco’s financial strategies reflect the global shifts. Though its external debt slightly decreased from \(69.63 billion in 2023 to \)67.99 billion in 2024, the debt service soared to new heights. Notably, public sector borrowing dominated the external debt landscape, with \(45.72 billion out of \)57.20 billion being publicly guaranteed by 2024.

Strategic Debt Management and Global Financial Markets

The Moroccan government’s debt strategy indicates a pivot from short-term borrowing towards more long-term and domestically financed debt. This significant move parallels a global trend aimed at mitigating exposure to volatile global interest rates. Morocco’s short-term debt contracted sharply and was counterbalanced by new long-term external disbursements, which rose to $8.61 billion in 2024.

The Cost of Stability and Socioeconomic Implications

While strategic repositioning aids in forestalling immediate vulnerabilities, the cost of such stability cannot be overlooked. Morocco’s interest and principal repayments surged, with debt service consuming 13% of export revenues in 2024 as external debt represented 44.7% of gross national income. Though Morocco retains a sturdy external position regionally, the increasing financial demands are a cautionary tale for broader fiscal sustainability.

Conclusion: Balancing Growth and Stability

As the financial landscape of 2025 takes shape, Morocco, like many nations, faces the intricate task of sustaining international financing access, safeguarding its foreign reserves, and weathering escalating interest costs — all while nurturing economic growth. According to Morocco World News, maintaining this delicate balance will be crucial for Morocco’s continued resilience in the global economy.