Ukraine-Russia War Threatens Morocco’s Economy as Global Prices Surge

Far from the Moroccan coasts, the confrontation between two of Rabat’s diplomatic and commercial partners will impact the national economy. For now, it is difficult to measure the extent of the repercussions of this war on the kingdom, says the newspaper Les Inspirations Eco, noting that the conflict has already led to a surge in world prices (cereals or oil).

According to the newspaper, "it is too early to talk about the impact of the crisis on the activity of national operators, as the latter have already built up their stocks." However, it specifies, "if the crisis persists over time, it would not be surprising if ’the problem has repercussions on import prices.’"

The government spokesman, Mustapha Baitas, has warned that the conflict will have an impact on the prices of basic products in Morocco. One of the main concerns of the authorities is Morocco’s dependence on cereal exports from Russia and Ukraine.

According to the figures of the Office des Changes, "Moroccan imports from Ukraine are estimated at 2.697 billion dirhams in 2021." This is largely (42%) wheat. It also strongly depends on more than $1 billion in annual Russian exports of minerals, chemicals and energy that contribute to fueling the Moroccan industry.

It is this dependence on the products of the two sides of the current conflict that should see Moroccans directly feel the effects of geopolitical games on their table. The presence of bread in the Moroccan diet is likely to drive up costs.