Morocco’s Economic Resilience Shines Despite Global Health Crisis

Global credit insurers like Coface and Euler Hermes, and smaller structures like the Belgian Credendo, confirm the solidity of Morocco on the various components of country risk. "For these organizations, whose prescriptions are scrutinized by investors and multinational companies, on the crucial criterion of political risk, the kingdom is a safe bet," says the newspaper Les Inspirations ECO, adding that "the stability of the functioning of political institutions gives it a competitive advantage that has allowed it not to see the collapse of FDI flows and to continue to raise funds on the international financial market under very competitive conditions."

To read: Morocco’s Economy Struggles to Rebound as Tourism and Exports Falter Amid Pandemic

However, the economy has been shaken by a drop in exports, notes the newspaper. "Exports of goods and services (39% of GDP in 2019), dependent on the European economies, collapsed in 2020. Vehicle and automotive parts sales (20% of goods and services exports in 2019) were particularly hard hit. Clothing exports (7%) and aeronautical parts also suffered," it details. But good prospects are expected in 2021, even if the health crisis continues to rage in Europe.

To read: Morocco’s Economy Poised for 5.3% Growth in 2021, Contingent on Vaccine Rollout

"The drop in tourism (12% of GDP) and employment also impacted the Moroccan economy," the newspaper also notes. Similarly, "household consumption (58% of GDP) has fallen sharply." On the other hand, remittances from Moroccans living abroad (MRE) (6% of GDP in 2019) have seen a strong increase. The unemployment rate has also risen (13% in 2020 compared to 9.8% in 2019), the newspaper points out, noting that "the largest job losses are in the informal sector (12% of GDP and 36% of the active population)."