Morocco’s Central Bank forecasts 6.3% drop in Country’s GDP in 2020 & 4.7 % growth in 2021

Morocco’s Gross Domestic Product (GDP) is expected to fall by 6.3 pc this year before recovering quickly and rebounding by 4.7 pc in 2021, said on Tuesday Bank Al Maghrib in a press release issued following its third quarterly meeting.

According to the experts of the Kingdom’s central Bank, the Moroccan economy has been affected like all countries around the world by the global health crisis generated by the COVID-19 pandemic and the lockdown measures made to prevent the spread of the deadly virus.

The Central bank decided to maintain its key rate unchanged at 1.5 percent, while continuing to monitor closely the economic and financial situation at home and at the international level.

After its stagnation in the second quarter and its slight year-on-year decline in July, the Moroccan Consumer Price Index rose by 0.9 pc in August as a result of higher volatile food prices.

As to inflation, it is expected to continue evolving at low levels, averaging 0.4 pc in 2020 before rising moderately to 1 pc in 2021, said Bank Al Maghrib, noting that it will update regularly its projections, which remain surrounded by uncertainties related to the evolution of the pandemic, the scope of its repercussions and the pace of recovery.