Moroccan Economists Urge Government Action to Shield Economy from Coronavirus Impact

On the economic level, the Alliance points out that many international organizations, including the OECD and the IMF, have revised downward the global growth prospects for the year 2020. And this can get worse, depending on the evolution of the epidemic. Bad news for "the Moroccan economy, which is among the top 20 countries in the world, directly affected by the decline in economic activity in China," say the Istiqlal economists, who based themselves on UNCTAD figures. They point out that things will get even worse, especially in "the export sectors, crafts, tourism and the sectors that depend on them such as transport, commerce, catering, leisure, and travel agencies.

As bad news never comes alone, the unfavorable climatic effects, added to the impact of the coronavirus, announce a drop in the growth rate planned by the government, as part of the 2020 finance law. The Istiqlal economists foresee a "deterioration of the financial situation of several economic operators, such as SMEs, VSEs, local commerce and craftsmen". They also fear a "risk of amplification of business failures and job losses that may result from this".

Because of all these consequences, the second opposition party calls on the El Otmani government to "adopt emergency measures and put in place a tool for anticipating and steering the economic and social effects of the crisis". It invites the Executive to fully address this crisis, "to stem its threats and, if necessary, seize the opportunities".

Alongside the persistence of the virus, the AEI insists on "encouraging the maintenance of jobs" by setting up support mechanisms for the most affected companies, such as partial exemption from social security contributions, deferral of bank, tax and social debts, encouragement of telework and authorization of part-time work to avoid layoffs and preserve the skills of companies, or even "a widespread reduction in effective payment deadlines", particularly in favor of SMEs and VSEs.