Moroccan Business Council Warns of Economic Fallout from COVID-19 Pandemic

In a note on the global health crisis, the CMC explains that "bioterrorism was born with the installation of a climate of terror and phobia in all corners of the world". In the blink of an eye, it "pushed the rulers of all the countries of the world to take rapid measures to stop the invasion of the disease," explains the note, which particularly insists on the self-isolation of all countries. "The markets under pressure from the slowdown or even the halt of the Chinese economy, panicked and showed evolutions whose magnitudes were unexpected," the CMC points out, specifying that the most spectacular collapse concerned the oil market, which went from around $65 on January 15 to $26.46 on March 19, 2020.

Great uncertainties and legitimate questions are beginning to arise about the future. But what about Morocco, which is among the countries hit hard by the virus and which, in an effort to limit its spread, has been forced to take drastic measures with heavy consequences on the country’s economy. Just like France, Spain, Germany, Italy, which have released large budgets to deal with the disease, Morocco has allocated "a budget envelope of 10 billion DH, of which 5 billion are reserved to counter the pandemic, and the other 5 to support the affected economic activities". The fund created for the management of the covid-19 pandemic will be replenished in a few days by private and public companies and institutions, as well as volunteer individuals.

But according to the private and independent Observatory of the Moroccan economy, specialized in the analysis and monitoring of the economic situation, the coronavirus is not the only bone stuck in the throat of the Moroccan economy. There is also "the almost known underperformance of the agricultural sector, with a rainfall deficit observed in recent months" which justifies the poor agricultural season "whose magnitude has already pushed the supervisory ministry to implement an Emergency Plan to mitigate the lack of water and protect the livestock".

According to the CMC note, the accommodation and catering sector is among the activities most affected by the pandemic. "Its real value added should decline by around 25% as the recovery would be slow and difficult". Then come the transport services, both air, rail and road.