Morocco Earthquake Death Toll Rises to 2,862, Economic Losses Estimated at 8% of GDP

The powerful September 8 earthquake caused economic losses estimated at 106 billion dirhams by the United States Geological Survey, or 8% of Morocco’s Gross Domestic Product (GDP), reports the daily Assabah. The latest annual report of Bank Al-Maghrib (BAM) indicates that GDP reached 1,330 billion dirhams this year. The American agency has classified the Al Haouz earthquake as a "red alert". But some economic analysts do not share the assessment of the American institute. In their view, it seems exaggerated. An exaggeration that they justify by their lack of knowledge of the nature of the localities affected by the earthquake. According to them, most of these localities are in rural areas that do not have significant economic activities and structures. Consequently, the cost of the damage should be less than the forecasts of the American agency.

The earthquake will seriously undermine Moroccan tourism, which is gradually recovering its pre-Covid-19 level. Several tourist departures have already been recorded in tourist establishments in Marrakech and Agadir, two very popular destinations. Cancellations of stays could be recorded in the coming days. If the forecasts are confirmed, it would be a blow to this sector, which contributes 7% to GDP. The growth rate could also be reduced.

Given the damage (destruction of several infrastructures, including roads, but also many homes) caused by the powerful Al Haouz earthquake, economic analysts estimate the reconstruction cost at 27 billion dirhams, or 2% of GDP.