Morocco's economy is expected to contract by 5.2 percent in 2020, followed by a rebound of 4.2 percent in 2021, according to predictions by the central bank.
In a press release published Tuesday after its council, the apex financial institution said that agricultural value added would experience a decline of 4.6 percent, with a cereal harvest estimated by the agriculture department at 30 million quintals, and that of non-agricultural activities would decrease by 5.3 percent.
“Under the combined effect of drought and restrictions to limit the spread of Covid-19, the economy, according to central bank projections, is likely to contract by 5.2 percent in 2020, the strongest since 1996,” the press release reads.
In 2021, the central bank expects a growth rebound to 4.2 percent, with an increase in agricultural value added of 12.4 percent, assuming a cereal production of 75 million quintals, and some improvement in the pace of non-agricultural activities to the tune of 3.1 percent.
With regard to inflation, the central bank forecasts that it will remain at a moderate level around 1 percent in 2020 and in 2021.