![]() In the short run, this decision had an instantaneous impact on activity. The first measure was to increase public investment by creating a new strategic investment fund of 45 billion dirhams – equal to 4.5% of Moroccan GDP. My work assesses the effects of the actions taken by the government during Covid-19 on economic variables and raises many questions about the design of monetary and fiscal policies in the future, and their interaction in an environment of high public debt. Estimating the economic effects of these measures is of critical importance to the government, as they indicate the level of support needed in a shrinking fiscal space. These include the creation of a strategic investment fund, public administration spending, cash transfers to households and lower interest rates. The state has taken measures to bolster the preservation of jobs, the maintenance of business activity and the establishment of conditions for economic recovery. ![]() The pandemic has aggravated this situation by generating a decline in GDP recorded at 7.2% in 2020. ![]() The Moroccan economy, in the pre-crisis period, was characterised by several structural vulnerabilities – such as a deceleration of the growth rate, a high rate of unemployment and fragility of both the public finances and the current account of the balance of payments. It is a unique crisis in terms of its severity and the scale of its spread. It is a shock that has hit both demand and production through the disruption of supply chains, which has caused a sharp slowdown in the pace of economic growth. In Morocco, the economic and social assessment of the Covid-19 pandemic reveals a deep recession that has negatively affected businesses and households. In terms of monetary decisions, reduction of the interest rate by 0.75% allows the reduction of the public debt as a result of the enrichment of the economy, investment and consumption. ![]() The Moroccan government has taken measures to strengthen the resilience of the economy, including the creation of a strategic investment fund, public administration spending, cash transfers to households and lower interest rates.Įstimating the economic effects of these measures is of critical importance to the government, as they indicate the level of support needed in a shrinking fiscal space. ![]()
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