Morocco Faces ’Worst Economic Year of Century’ Due to COVID-19 and Drought

In Morocco, the year 2020 will end with negative growth. It will be the worst economic year of this century for the kingdom, due to the covid-19 crisis and the long drought, Ahmed Lahlimi said at the outset. But he thinks the state has managed to cope with the covid-19 crisis, notably by mobilizing internal resources for social initiatives.

The crisis has spared no sector. The country’s main source of foreign exchange has been hit hard. These are exports of automobiles, phosphates and textiles, tourism and remittances from migrants. The crisis is multidimensional, the HCP boss said.

This suggests, according to the HCP’s projections, that in the second quarter of 2020, the kingdom’s economy will contract up to -1.8% with estimated losses of 10.9 billion dirhams. Faced with this situation, Ahmed Lahlimi indicates that growth rates will be negative in Morocco. The unfavorable regional environment must be added due to 70% of its economic exchanges with the European Union, which are also affected.

Morocco’s response has materialized in the taking of certain health and social measures. He praised the creation of a special anti-crisis fund by King Mohammed VI in the amount of one billion euros, which is funded by public and private donations. He noted that the state has fully played its role in the crisis. That is why he said: "We must pay tribute to this government which, under the instructions of the king, has been fully involved in this phase".

Lahlimi believes that we must think about the post-crisis period. Projects that put man and the environment at the center of their interests must be the priority of the state. Innovative projects to attract European investors. He says he is in favor of the internal or external debt necessary to finance investments. It is necessary to aim for growth that creates jobs, he concluded.