The duration of Morocco’s lockdown (March 20 – June 10) could incur some 7.5 billion euro in losses to the national economy, Economy and Finance minister, Mohamed Benchaaboun has warned.Speaking on Tuesday at the Chamber of Advisors, the Minister said that the two-month lockdown would cause the Moroccan economy losses of 93 million euros (1 billion DH) per day, or 6 points in Gross Domestic Product (GDP) growth.
“The loss would have been much greater if the financial support had not been provided by the Special Fund for the Management of the Coronavirus Pandemic (Covid-19),” Benchaaboun stressed, adding that this deficit could worsen if the lockdown is extended again.
The minister noted that the economic slowdown is expected to lead to a drop in treasury revenue of about 500 million dirhams per day during that period, stressing that Morocco, like most countries, has been heavily impacted by the repercussions of the health crisis on the economic and financial sectors.
According to statistics, for the first four months of the year 2020, exports have recorded a sharp decline of 61.5 percent, against 37.6 percent for imports, he said, noting that the most impacted export sectors are industrial activities related to global value chains, including automotive (-96 percent in April and -86 percent in March), aerospace (-81 percent in April and -52 percent in March) and electronics (-93 percent in April and -51 percent in March).
The textile sector with -86.5 percent in April and -40 percent in March, is one of the most affected industries, which will have to be revived as soon as possible.
On the other hand, exports of phosphates and derivatives witnessed a positive growth of 14 percent in April, the minister added.
The kingdom’s Minister of Finance also stressed that the slowdown in economic activity was also reflected in the growth of tourism receipts, which fell by 60 percent last April, bringing to -15 percent the decline in the sector over the first four months of the year.