Moroccan Economy Hit as Remittances and Tourism Revenue Plummet Amid Pandemic

According to figures published by the Minister of Finance, "travel receipts" have plummeted by 28.9% while remittances from MREs to Morocco, another major foreign exchange provider, are down 11.4%.

The tourism sector is one of the hardest hit by the health crisis and this is reflected in the evolution of "travel receipts" which normally allow for significant foreign exchange inflows.

Regarding foreign direct investment (FDI) flows, they reach 13 billion dirhams after the first 6 months of the year, down 20%, according to the same source. For the Minister of Economy, Mohamed Benchaâboun, Morocco still manages to maintain its attractiveness for foreign investment even though FDI is down.

According to the minister, with foreign trade in the doldrums, a deterioration of 3.9 percentage points in the current account balance of the balance of payments compared to its 2019 level is expected for 2020. Furthermore, the current account deficit of the balance of payments should thus reach 8% of GDP this year, its highest level since 2012.