Morocco’s economy witnessed a 7% contraction in 2020, according to the International Monetary Fund (IMF), and had lost 581,000 jobs year on year by the third quarter of that year.
The government acted quickly to support the economy, but that has understandably resulted in lower GDP, and a downturn in key sectors including tourism. In addition, the kingdom also faced a drought, which further deepened the economic contraction.
The Moroccan government introduced a number of measures to protect citizens from hardship as the pandemic negatively affected business and investment activity. These included USD 8.49 billion of loans guaranteed by the state and USD 5.09 billion allocated to a Recovery Fund (Essor), apart from other fiscal and monetary measures to support the economy. However, the government saw reduced revenues from taxes, levies, and lower receipts from tourism and other sectors as the global economy shut down for a period of time.
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