Moody’s Downgrades Outlook for Moroccan Banks Amid COVID-19 and Economic Challenges

Moody’s report indicates that the health crisis will have a negative impact on Morocco’s economic growth. Similarly, covid-19 will exacerbate the effect of low rainfall that weighs on the agricultural sector. But this impact will be offset by the drop in energy imports, as Morocco is an oil importer. The Moroccan authorities’ response to covid-19 could be of great support for the economic recovery after the crisis.

"Depending on the duration of the crisis, the risks of the decline weighing on our current GDP growth forecasts are increasing. They reflect both the shock of the covid-19 pandemic and the climatic conditions marked by a rainfall deficit," the report states.