Knowledge Note

"The COVID-19 pandemic hit Morocco’s economy in a context of low and below potential economic growth, constrained by low productivity."

With the double domestic and external shocks stemming from the COVID-19 shock, the economy is projected to face a deep recession, its first recession since 1995. Fiscal consolidation paused given the pressures on expenditures and downturn in economic activity. The decrease in remittances, tourism, and FDI along with the significant drop in exports are adversely impacting the external position. Growth is expected to gradually recover but the pace and length of the recovery are subject to high uncertainty.