Morocco’s Economy Resilient Against COVID-19 Shocks, Finance Minister Says

The Moroccan economy can withstand the shocks induced by the health crisis caused by the spread of covid-19, reassured Mohamed Benchaâboun, [Minister of Economy, Finance and Administration Reform]. He draws this assurance from the support of both bilateral and multilateral donors to the kingdom. "The fundamentals of the national economy are quite resilient to be able to absorb, in the short term, the shocks induced by this crisis," said Benchaâboun to the newspaper L’Economiste.

In addition to the support of donors, he said, we must add the country’s foreign exchange reserves, which cover more than 5 and a half months of goods and services imports. He did not fail to indicate that recourse to the international financial market or to the facility offered by the International Monetary Fund (IMF) under the Precautionary and Liquidity Line (PLL) can be exploited to ensure the resilience of the Moroccan economy to the crisis.

Morocco has taken drastic measures aimed at strengthening the health infrastructure, preserving jobs and supporting the purchasing power of vulnerable households at the very beginning of the crisis. According to the minister, Morocco has made these choices to place man as a priority while preserving the resilience of economic activity.

Benchaâboun deplored the lack of a concerted response from the various sectors of the national economy that should maintain their momentum in the face of the covid-19 crisis. Tourism and related activities, air transport as well as textiles and automobiles are sectors that have been hit hard. Recalling the drastic measures taken by the kingdom, the minister cited the isolation of the territory, the early confinement of the population and the establishment of the Economic Monitoring Committee, to define actions that can contain the health, economic and social consequences of the covid-19 crisis.

For the minister, everything that has been done to curb the crisis reveals Morocco’s ability to meet the challenges it faces, but above all to transform risks into opportunities. This is why he did not fail to praise the spontaneous solidarity of both Moroccan citizens and public and private legal entities, who have fed the Special Fund for the Management of covid-19 through various donations.