The Moroccan government expected, after a cabinet meeting, that Morocco's economy would grow by 4.8 percent in 2021, and that the budget deficit would narrow to 6.5 percent of GDP.
In this context, the Moroccan Minister of Economy and Finance pointed out that preserving jobs and integrating the informal economy are among the top goals.
The royal court had expected in July, after reviewing the 2020 budget that the deficit would reach 7.5 percent and gross domestic product would shrink by five percent in the wake of the outbreak of the Coronavirus. Morocco's economy grew by only 0.1 percent in the first three months of this year, and then shrank by 13.8 percent in the second quarter, as domestic and foreign demand was hit by the "Covid-19" pandemic. The pandemic has affected exports, the tourism sector, remittances from Moroccans living abroad, and foreign investment, all of which are major sources of hard currency.
In July, the Moroccan monarch announced the pumping of about $12.8 billion to support the economy in the face of the repercussions of the Coronavirus, and the establishment of a strategic investment fund whose mission is to support productive activities and finance major investment projects between the public and private sectors. Public investment will continue to amount to 230 billion dirhams (about 24.9 billion dollars), adding that 45 billion dirhams will be funded through the new fund. The kingdom has reopened most of the economic activities since late May after the lockdown which was imposed on March 20 to contain the virus outbreak.
Source (Al-Raya Newspaper-Qatar, Edited)
