The Moroccan Conjuncture Center (CMC) released the content of its latest monthly publication “Maroc Conjoncture”, which focused on the challenges and opportunities for the national economy in the post-covid era.
After having detailed aspects inherent to the confidence of economic agents, the industrial strategy for the post-pandemic, Moroccan industry faced with the effects of Covid-19, the perception of the business climate, the new strategic vision of the agricultural sector as well as as the economic outlook for the current year, the CMC indicates that the future is viewed with more optimism by both households and businesses.
The recent dynamics of business surveys suggest that businesses and households are starting to look to the future with more optimism, comforted by the conviction that uncertainty will decrease and that health measures and vaccinations will eventually bear fruit, notes the Center, specifying that the results of IHS Markit surveys on purchasing manager indices are very encouraging, especially for developed countries.
The publication further notes that in the Euro zone, manufacturing activity is soaring and growth in services is accelerating thanks to the easing of restrictive measures, causing the composite PMI to reach its best level since February in May. 2018.
With regard to the axis relating to the “industrial strategy for the post-pandemic”, the Center notes that the supply crisis caused by the spread of Covid-19 and the persistence of its effects on economic performance in around the world has revived the debate about trade liberalization and the relocation of production systems.
Indeed, the shortage of medical products in the midst of a health crisis and the supply difficulties that affected many strategic products have revealed to light the vulnerability of global production chains, underlines the Center, considering that the return to certain forms of protectionism with the imposition of stronger restrictions on trade as well as the evocation of relocation projects are likely to “accentuate this vulnerability”.
Morocco, which presents itself as a small open economy aiming at greater integration into world trade, could only adapt its development model to this new situation, indicates the CMC, noting that industrial policy for the post-pandemic should develop attractiveness factors to take advantage of the relocation dynamic while supporting import substitution projects.
Regarding the new strategic vision of the agricultural sector, the CMC underlines that the Royal Directives, aimed at providing the agriculture sector with ad hoc governance, led to the implementation of the strategy endorsed in February 2020, known as “Generation Green 2020–2030”.
Its ambition is to strengthen Morocco’s leadership in agriculture and to establish itself, moreover, as a “new and efficient model” to be followed in order to strengthen the win-win partnership, especially with the countries of the African continent, exposed, of similar way to the Kingdom, to the unwelcome effects of climate change.
“In doing so, Morocco will provide its peers with the benefit of its expertise in soil fertility mapping and the use of fertilizers and will consolidate its position as a leading investor on the continent. Thus, the imitation effect has been usefully exploited by a number of countries, such as Senegal and Gabon, which drew inspiration from Morocco to develop their own green plans ”, underlines the CMC.
And to note that hunger and malnutrition, two devastating scourges, impact more than a third of the African population due to failing agricultural systems. “The bet, affirms the Center, is thus made on a better adaptation of the sector to the globalized imperatives of the 21st century, with the aim of guaranteeing a better standard of living for the populations”.