Policy Briefs
Economic Resilience in Morocco During Covid-19
No.
PB 76
Publisher
ERF
Date
May, 2022
Topic
I. Health
In a nutshell
- The COVID-19 crisis has heavily impacted the Moroccan economic situation.
- The travel and movement restrictions imposed in response to the pandemic have had a negative impact on both business activities and household living standards. The colossal job losses caused by the pandemic have led to a decline in the incomes of households, thereby affecting their level of consumption.
- The labor market situation has deteriorated under the combined effect of COVID-19 and the dry agricultural season, characterized by a decline in the number of jobs, a drop in the hourly volume of work, and an increase in unemployment, underemployment, and inactivity.
- In this context, the national economy has lost 432,000 jobs compared to 165,000 jobs created in 2019. This loss has affected both rural and urban areas (295,000 in rural areas and 137,000 in urban areas) and all sectors of economic activity.
- In addition to the loss of jobs, the number of hours worked per week declined by 20 percent from 494 million hours to 394 million hours, which corresponds to 2.1 million full-time jobs. The average number of hours worked per week fell from 45.2 to 37.5 hours.
- The government has taken measures to strengthen the resilience of the various economic agents (households, companies, the central bank, the Ministry of Finance…etc.). These measures include the creation of a strategic investment fund, public administration spending, cash transfers to households, private consumption, and lower interest rates.
Research Associates
Redouan Abdenour
Associate Professor, Mohamed V University