In Morocco, the budget deficit recorded in 2020 remains “under control” compared to most of its neighboring countries, which testifies to the fiscal prudence deployed to face the crisis linked to the Covid-19 pandemic, underlined the Director of the Maghreb and Malta Department at the World Bank (WB), Jesko S. Hentschel.
“As in most countries around the world, the Covid-19 pandemic has and will have marked consequences on public finances. In Morocco, the budget deficit recorded in 2020 remains under control compared to most of its neighboring countries, which testifies to the fiscal prudence with which the authorities have faced this crisis”, said Mr. Jesko S. Hentschel.
Thanks to the solidity of macroeconomic policies in Morocco as well as its close relationship with multilateral institutions, Hentschel indicated that the Kingdom has been able to access significant external private and public financing over the past year, which has certainly helped helped mitigate the impact of the crisis.
“Despite the increase in its weight during the pandemic, Moroccan public debt remains sustainable,” he added, stressing that the Kingdom’s debt structure has certain characteristics that limit its vulnerability, such as for example the low weight short-term debt, and the relatively low proportion of external and foreign exchange debt.