Some 38% of Moroccan enterprises reduced staff due to pandemic
The pandemic and the restrictive measures related to it have taken a toll on Moroccan firms with 38% having been forced to cut staff while 8% have suspended activity waiting for better conditions, Morocco’s statistics agency (HCP) said.
Some 83% of all enterprises maintained business despite Covid-19 while 2.2% halted activity all together, the agency said in a report.
Transport companies, hotels and restaurants as well as real estate firms have been the most affected by the pandemic which has led to a rise in the unemployment rate to 12.5% in 2020 and cut more than 500,000 job opportunities.
The Moroccan economy has contracted by 7% in 2020 and the budget deficit has deepened 7.6% amid a rise in public spending to cushion the pandemic impact.
Morocco has distributed cash to vulnerable people and those who have to stop activity during a three month-long lockdown.
Prior to the pandemic, Morocco has launched the Intelaka programs to facilitate access of young entrepreneurs and SMEs to loans.
The government further strengthened its guaranteed loans system during the pandemic and deferred taxes for most hit businesses.