Euromesco Spot-On 18 – Morocco fighting against Covid-19: Drastic times call for drastic measures
June 26, 2020
Like many countries, Morocco is expected to undergo a severe economic slowdown this year because of the COVID-19 pandemic. The combined effect of poor crop year and the implications of confinement policy in the secondary and tertiary sectors has led to a downward revision of the growth rate. While the World Bank forecasts -1.7% contraction of Morocco’s economic activity by the end of 2020, the International Monetary Fund (IMF) expects a sharp decline reaching -3.7%. On the other hand, Bank Al-Maghrib (BAM) expects a stagnation of the economic activity around 2.3%.
The COVID-19 crisis could potentially plunge Morocco into an economic recession. Several firms are on standstill and jobs are being lost. However, this pandemic highlights the crucial role of the state in protecting and prioritizing the health of its human capital, beyond any economic interest. In this respect, COVID-19 could be a particular opportunity to restore trust between the citizen and the state for a cohesive, inclusive and responsible society.
It is also an opportunity to redirect the national productive apparatus towards the satisfaction of domestic demand, particularly for strategic products. In addition, the increasing world demand for basic medical products in the short and the medium terms, creates new prospects for Moroccan manufacturing enterprises.