Moroccan Economy Faces Recession as Remittances Plummet 69% Amid COVID-19 Crisis

The year 2020 will probably be a year of recession for the Moroccan economy, predicts Zoubir Bouhout. To support his argument, the director of the Provincial Tourism Council in Ouarzazate cited the HCP survey which indicates that the health crisis has caused the total, partial or temporary cessation of 57% of all companies in the economic fabric at the beginning of April, in addition to a poor cereal harvest.

According to him, according to HCP data, 89% of companies operating in the accommodation and catering sectors, 76% of textile and leather companies, 73% of companies in the metal and mechanical industries and 60% of companies specialized in construction are at a standstill. A situation that has led to the reduction of 726,000 jobs.

The study conducted by the director of the Provincial Tourism Council in Ouarzazate also reveals that the situation in Europe will have a negative impact on the Moroccan economy, especially in terms of trade and payment balances, given Morocco’s great dependence on Europe in terms of exports (58%), foreign direct investment (59%), tourism revenue (70%) and remittances from Moroccans living abroad (69%).