World Bank expects Morocco’s economy to contract 4% in 2020

World Bank expects Morocco’s economy to contract 4% in 2020

The World Bank delivered bleak prospects for growth in Morocco which was seen dropping to -4% in 2020 from 2.5% last year on the backdrop of the coronavirus outbreak.

The forecast is close to that of the -3.7% put forward by the IMF for 2020 to which drought worsened Morocco’s growth prospects.

The spread of the coronavirus has impacted negatively the global economy which is expected to recede by 5.2% this year, the World Bank said in a report.

“The deep recessions triggered by the pandemic are expected to leave lasting scars through lower investment, an erosion of human capital through lost work and schooling, and fragmentation of global trade and supply linkages,” the World Bank said.

The crisis was described as the worst since 1870.

In the MENA region, most economies are expected to contract with oil exporting countries the most hit by the coronavirus.

Algeria’s growth will drop to -6% and -4% for Tunsisia while Egypt’s economy will grow by 3%.

“For emerging markets and developing countries, many of which face daunting vulnerabilities, it is critical to strengthen public health systems, address the challenges posed by informality, and implement reforms that will support strong and sustainable growth once the health crisis abates,” the World Bank said.

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