The International Monetary Fund expected that the Moroccan economy will shrink this year by 3.7 percent, affected by the global health crisis and its repercussions on the performance of the national economy.
The International Finance Corporation, in its first evaluation of the effects of Corona, considers that Morocco will go into recession this year, despite the efforts made to mitigate the effects of the Coronavirus.
Despite measures taken to increase health spending and support businesses and families, the kingdom's economy is likely to pass into recession this year. This is due to the large decreases in exports, tourism, remittances from workers abroad, and the temporary halt of economic activity.
It is expected that the current account deficit will widen and the capital inflows to the Kingdom will decrease in 2020, but it is expected that Morocco will maintain an adequate level of official reserves after obtaining financing from the "prevention and liquidity line".
The International Monetary Fund had made it possible for Morocco to withdraw from the $3 billion cash and liquidity line, although it would continue to follow up with Morocco its efforts on dealing with the impact of the pandemic.
According to the International Monetary Fund, Morocco is expected to be affected by the decline in external demand, especially in light of the International Monetary Fund's expectation that the GDP of the euro area will decrease by 7.5%.
Ahmed Al-Halimi, the high commissioner in planning considered that Morocco cannot escape the difficult situation that is being experienced by many countries in the region, especially European countries, with which 70% of trade exchanges are completed.
Source (New Arab newspaper, Edited)
