Morocco’s Economy Falters: GDP Shrinks 13.8% as Exports and Imports Plummet

The French magazine Le Point, which has a copy of this report, devoted an article to the Moroccan economy titled "Morocco: the vulnerabilities of the kingdom". Thus, in the second quarter of 2020, the Moroccan GDP contracted by 13.8%, exports fell by 25%. As for imports, they recorded a 26% drop. Immediate effects: a fall in tax revenues, an increase to 7.5% of the budget deficit. Public debt stood at 91.5% of GDP, which represents the highest indebtedness of the Maghreb countries.

According to data from the Moroccan Ministry of Economy and Finance, 4.3 million households from the informal sector received financial aid. The Economic Monitoring Council (CVE) specifies that 2.4 million Moroccans work in this sector, which brings in 410 billion dirhams, or 35% of GDP. Due to the health crisis related to the coronavirus, the official unemployment rate excluding the informal sector, reports the HCP, increased from 10.5% in the first quarter to 16% in the second quarter. In addition, 810,000 employees were on temporary leave during the lockdown.

Faced with this rather gloomy picture, the Amadeus Institute has made some recommendations. It also placed particular emphasis on the structural weaknesses of the Moroccan model, which favors the economy of rents and limits free competition. It also called for the legalization of cannabis. A report from the UN office specializing in drugs and crime also indicates that Moroccan cannabis exports are around 80%.