## Morocco: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Morocco

_IMF Staff Country Reports, January 5, 2021_

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## Bibliographic details
- Published: January 5, 2021
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781513565958.002

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### Executive summary and context
- The pandemic has exerted a heavy toll on Morocco’s population.
- A severe drought affected agriculture output.
- Authorities’ prompt response helped contain social and economic damage from the shocks but could not avoid a severe contraction of GDP.
- Loss of tax revenues deteriorated the fiscal position.
- Fall in tourism receipts widened the current account deficit.
- Greater access to external borrowing, including the full drawing of the IMF Precautionary and Liquidity Line (PLL) arrangement, has helped maintain international reserves at adequate levels so far in 2020.
- A gradual economic recovery is expected to begin in 2021, assuming the impact of the drought and the health crisis wane next year.
- The recent rise in COVID-19 cases, both in Morocco and its main trading partners, suggests that this outlook remains subject to significant downside risks.

### Key findings and economic impacts
- Public health and economic shocks:
  - COVID-19 pandemic: heavy toll on population and economy.
  - Severe drought: significant negative effect on agriculture output.
- Macroeconomic consequences:
  - Severe contraction of GDP in 2020.
  - Deterioration of the fiscal position due to loss of tax revenues.
  - Widening of the current account deficit driven by fall in tourism receipts.
- External financing and reserves:
  - Full drawing of the IMF Precautionary and Liquidity Line (PLL) arrangement accessed.
  - International reserves maintained at adequate levels so far in 2020.

### Outlook and risks
- Baseline projection:
  - Gradual economic recovery expected to begin in 2021, conditional on the waning of the drought and the health crisis.
- Downside risks:
  - Recent rise in COVID-19 cases in Morocco and major trading partners increases risk to the recovery outlook.

### Publication metadata and identifiers
- Pages: 72
- Volume: 2021
- Issue: 002
- Series: Country Report No. 2021/002
- DOI: https://doi.org/10.5089/9781513565958.002
- Stock No: 1MAREA2021001
- ISBN: 9781513565958
- ISSN: 1934-7685
- Publication date on landing page: January 5, 2021
- Subject: COVID-19, Credit, External debt, Financial institutions, Health, Loans, Money, Public debt
- Keywords: coupon rate, COVID-19, CR, Credit, draft budget law, Global, government policy, ISCR, Loans, Maghreb, vaccination campaign, vaccine dose

*International Monetary Fund. Middle East and Central Asia Dept. "Morocco: 2020 Article IV Consultation-Press Release; Staff Report; and Statement by the Executive Director for Morocco", IMF Staff Country Reports 2021, 002 (2021).*

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_Source: https://www.imf.org/en/publications/cr/issues/2021/01/04/morocco-2020-article-iv-consultation-press-release-staff-report-and-statement-by-the-49987_