In 2020, Morocco’s GDP is likely to contract between 6 and 7%, according to the IMF. The organization, which predicts a rebound to 4.5% in 2021, attributes these forecasts to the combined effects of the covid-19 pandemic and the drought on the Moroccan economy.
The IMF expects a decline of 6 to 7% of Morocco’s GDP for the year 2020. This was announced by the institution in a press release published on Monday, November 2, 2020.
This forecast is due to the combined effects of the covid-19 pandemic and drought on the Moroccan economy. While the unemployment rate is expected to rise by the end of this year, fiscal and external deficits are expected to widen, owing to lower tax revenues and lower foreign exchange earnings from tourism.
Nevertheless, says the institution, the country has recorded good performance in terms of resilience to the crisis affecting its economy. Thanks to the rapid response plan put in place by the government in collaboration with the Central Bank, the financial sector has succeeded in reducing the impacts of the pandemic, while the social assistance program has made it possible to help the population.
In addition, “ the resilience of transfers from Moroccans living abroad and the drop in imports have limited Morocco’s external financing needs, and international reserves remain well above their level of last year, in particular thanks to the drawdown under the title. the precautionary and liquidity line of the IMF last April, and the intensification of efforts to mobilize external financing, ”the statement read.
According to the IMF, in 2021, the Moroccan economy is expected to rebound to 4.5% due to an expected decrease in the effects of drought and pandemic, although considerable risks remain.
As a reminder, the latest African Union report indicates that Morocco has so far recorded 222,544 confirmed cases of covid-19 for 3,762 deaths and 184,313 recoveries.
