The loss is due to the decline in revenue of both Morocco’s tourism and industrial export activities during the crisis.
Rabat – Morocco’s Minister of Economy, Finance, and Administration Reform, Mohamed Benchaaboun, stated that the country loses up to MAD 1 billion ($100 million) during each day under lockdown, noting it is expected that the two months of quarantine will cause the national economy to lose 6 points of GDP growth for 2020.
“The loss would have been greater if financial support had not been provided by the COVID-19 pandemic management fund, which was created on royal instructions,” explained Benchaaboun in the weekly session dedicated to parliamentary questions on Tuesday.
On the fiscal level, he added that “the economic recession is expected to cause a shortfall in Morocco’s treasury revenues of approximately MAD 500 million per day during the quarantine period.”
Benchaaboun went on to say that Morocco has been largely affected by the repercussions of the health crisis at the economic and financial levels, as shown by a set of economic indicators.
Citing figures of Morocco’s economic activities for the first four months of the current year, the minister explained that the country sustained a significant decline in exports (61.5%) as well as a drop of 37.6% for imports.
He noted that Morocco’s key export sectors, which include the industrial activities, are the most impacted. The automotive sector recorded a 96% drop as of the end of April, compared to an 86% drop in March.
Exports of aeronautics also recorded a drop of 81% in April compared to a 52% drop one month earlier. Electronics dropped by 93% in April compared to 51% in March.
Textiles and clothing exports registered an 86.5% drop in April compared to 40% in March.
While the export of Morocco’s industrial goods sustained a notable setback, the exportation of phosphate and its derivatives recorded a sharp rise of 14% in April.
Beyond the export industries, the minister also attributed the slowdown in economic activity to the suspension of Morocco’s entire tourism sector, whose revenue fell by 60% as of the end of April.
Also among the causes is the decline in remittances from Moroccans residing abroad, which recorded a drop of 30% by the end of April.
Benchaaboun concluded that all the above-mentioned economic indicators reflect the extent to which the pandemic impact Morocco’s economy.