The International Monetary Fund (IMF) Head of Mission for Morocco Roberto Cardarelli, announced that Morocco’s GDP for the year 2020 will fall from 6 to 7%. The institution also projected an increase in the unemployment rate by the end of the year and stressed that budget and external deficits are expected to widen as a result of lower tax revenues and lower foreign exchange receipts from tourism. These forecasts are linked to the impact of the drought and the global health crisis on the Moroccan economy.
However, the IMF stressed that Morocco has achieved significant achievements in terms of resilience to the economic crisis through emergency social assistance to support the population and measures initiated to benefit the financial sector to alleviate the implications of the pandemic.
While risks remain, Roberto Cardarelli said Morocco’s GDP is expected to rebound by 4-5% in 2021 as the effects of drought and the Covid-19 pandemic decline.
It is worthy to note that the head of the IMF mission in charge of Morocco conducted consultations with the Moroccan authorities under Article IV of the Institution.