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Morocco Poised to Lead Post-COVID Automotive Industry Recovery, Fitch Reports
Thursday 30 April 2020, by
An analysis by the rating agency Fitch Ratings indicates that after the coronavirus crisis, Morocco will be able to benefit from the relaunch of the automotive sector. The kingdom would be at the top of the Risk/Profitability index developed by the institution, followed by Egypt.
According to the rating agency, Morocco and Egypt, "will benefit from the restructuring efforts of original equipment manufacturers (OEMs) after covid-19, as they seek to reduce their dependence on Chinese manufacturing and shorten their supply chains," reports agenceecofin.com.
Morocco, according to the agency’s rating, "has weathered the fiscal situation well," managing to mobilize "tax revenues of 24.1% in the first quarter of 2020," according to the "government resources and charges situation at the end of March 2020".
However, the expected drop in automotive production is likely to be a challenge, as the sector is the leading provider of export earnings.