Morocco Braces for Surge in Business Bankruptcies Amid Economic Challenges

"In Morocco, the rebound in business failures is one of the most spectacular among the countries covered by its study," Allianz indicates, stating that this trend is due to "significantly revised downward economic growth in 2022, to less than 1%, the surge in the energy bill, the rise in interest rates and wages, among other factors" which "will weigh heavily on the profitability and cash flow of Moroccan companies."

To this are added the additional impact of the energy shock and inflationary pressure, which have contributed to making the economic situation even more sensitive, leading to this particularly significant level of business failures.

The report explains that in Morocco, the effect of the economic crisis will begin to be felt "with more acuity in 2023, where exceptional public aid and great stability of macroeconomic aggregates had made it possible to digest exogenous shocks more."

In conclusion, Allianz Trade estimated that "due to its deep economic anchoring around the euro area countries, but also due to the increases recorded and expected in the key rate by Bank Al-Maghrib, the impact on the margins of Moroccan companies should follow a similar trend to that anticipated for companies in the euro area."