Morocco Forecasts 5% Economic Contraction in 2020 Amid Pandemic and Drought

These are forecasts that take into account the economic repercussions of the health crisis, as well as the negative effects of the drought on economic activity. With this PLFR, "butane gas is set at $290 US per tonne, compared to $350 US per tonne, provided for in the LF-2020, the euro/dollar parity of 1.11, in addition to a cereal production estimated at 30 million quintals instead of 70 million quintals, initially planned".

Regarding the significant drop in exports of goods and services, the Supplementary Finance Law - 2020 must constitute "the foundation to approve the measures capable of contributing to the revitalization of economic activity post-Covid 19", notes the Ministry of Finance.

It recalled that in view of the situation Morocco is going through, "the use of a supplementary finance law is necessary for several reasons, including compliance with the provisions of Article 77 of the Constitution, respect for the principle of budgetary sincerity, as well as the considerable change in the economic and social situation that prevailed at the time of the preparation of the LF-2020".