Morocco’s Economy Set to Shrink 6.2% in 2020, Worse Than Previous Forecasts

According to the new forecasts of the CMC, the drop in GDP (decline) stands at −6.2% for the current year. A more severe recession forecast than those of the government included in the draft amending finance law (-5%), the central bank (-5.2%), the World Bank (-4%) and the High Commission for Planning (-5.8%).

This downward revision of the growth forecast for the Moroccan economy is explained by three elements: the worrying evolution of the epidemiological situation worldwide, the exacerbation of the global economic recession and the 2020 amending finance law (LFR). This last element has been extensively analyzed by the CMC economists.

"In similar severe recessions, fiscal policy should be boldly punctual to partially repair the damage caused by the coronavirus pandemic to the national economic fabric and provide strong support to final demand that is suffering painfully," they estimate. For them, the State, through this draft amending finance law, has shed the economic role that is incumbent upon it in such a recession.