Morocco’s Business Confidence Plummets Amid COVID-19 Economic Fallout

According to this new index measuring quarterly the confidence of Moroccan business circles, the aggregate index of the current situation and the 6-month outlook indicates particularly low confidence and a pessimistic view of Morocco’s economic development, at 40.8 points (an indicator below 100 points is a contraction) for the second quarter of 2020, reports Hespress.

In detail, the index of the current situation is around 25 points, which represents a very negative assessment of the current economic situation among decision-makers. As for the economic outlook for the next 6 months, the index is estimated at 58.6 points, a little more optimistic than the current situation. However, it is still below expectations.

The Morocco Business Climate Index (CAM) is a monitoring, evaluation and decision-making tool for private and public decision-makers and financial markets, launched by Euros/Agency Africa, a public affairs, influence and communication agency, and Insightek, a market research firm.

According to these organizations, about 1,000 Moroccan business leaders of varying sizes, representing all sectors of activity, were surveyed for this index with a response rate of 15% and representing 80% of the sectors of activity. The initial results suggest a situation of "near-shutdown of the economy, against the backdrop of a blockage related to the coronavirus pandemic".