The Ministry of Economy, Finance and Administration Reform said on Tuesday that the two months of confinement, imposed by the new coronavirus (Covid-19), should cost the Moroccan economy 6 points growth of its Gross Domestic Product (GDP) for the year 2020, which means a loss of 1 billion dirhams per each day of confinement.
“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), created on the High Instructions of His Majesty King Mohammed VI”, underlined Benchaâboun during a session of oral questions in the House of Councilors.
In terms of public finances, the minister noted that the economic slowdown should lead to a drop in Treasury revenue of about 500 million dirhams per day during the period of sanitary confinement, stressing that Morocco, like most country, was strongly impacted by the economic and financial repercussions of the health crisis, as indicated by a set of economic indicators.
According to the data available for the first four months of 2020, exports registered a sharp decline of 61.5%, against 37.6% for imports, he said, noting that the sectors the most impacted exporters are industrial activities linked to global value chains, in particular the automobile industry (-96% in April and -86% in March), the aeronautical industry (-81% in April and -52% in March) and electronics (-93% in April and -51% in March).
On the other hand, exports of phosphates and derivatives registered a positive development of 14% in April, added the minister.
Benchaâboun also stressed that the slowdown in economic activity was also reflected in the growth of tourism receipts which fell by 60% last April, bringing the sector’s decline to -15% over the first four months of the year, indicating that transfers from Moroccans living abroad fell by 30% in April and by 11% between January and April of 2020.