Morocco Braces for Sharp Decline in Remittances Amid COVID-19 Crisis

According to CDG capital management, remittances from MRE, the main source of foreign exchange for Morocco, will not be spared by the coronavirus. Especially since more than half of MRE revenues, or 53%, come among others from France, Italy and Spain, countries hard hit by the global health crisis.

CDG capital management forecasts a decline of -30% to -40% in these revenues, or between -19 billion DH and -26 billion DH. But this decline could be limited due to the measures put in place by the governments of the countries to ensure the survival of companies.

Regarding the tourism sector, the collective asset management company specializing in financial markets forecasts a decline in travel revenues of -40% to -80% for the year 2020, depending on the extent of the health crisis (3 to 6 months). The pandemic will also have repercussions on FDI. The CDG Capital subsidiary expects a 50% to 60% drop in FDI flows for the year 2020.