On Friday April 2, 2021, the Economic Watch Committee (CVE) held its 12th working meeting, in videoconference mode, during which it was a question of reviewing recent developments in the national economic and financial situation. At the end of its meeting, the Committee decided to renew the support measures for the most affected sectors until June 30, 2021.
During this conference, the CVE decided to extend guarantee offers and several support measures relating to the eight program contracts signed until June 30, 2021: Tourism, catering, catering and events, amusement and amusement parks, press, cultural and creative industries, private sports halls and nurseries.
The recent evolution of the economic and financial situation was discussed as well as the examination of the economic and financial situation at the beginning of 2021 augurs well for a positive evolution of the economic activity.
This is evidenced by the favorable orientation of the main economic indicators (foreseeable increase in quarterly GDP of 0.5% in Q1-2021, rebound in cement sales of 3.9% in Q1-2021, increase in MRE revenue of 22% at the end of February …), even if certain sectors of activity still remain in the grip of recessionary tensions including tourism (drop in tourist arrivals of 81% at the end of February), aeronautics (drop in exports of -22, 7% at the end of February) and certain tertiary activities.
It should also be noted that certain export-oriented sectors, particularly the automobile and textile-clothing industries, are showing signs of slowing down, in connection with the situation of European markets severely affected by the new wave of the pandemic.
The favorable outlook for the agricultural season and the exemplary progress of the vaccination operation are all factors which will not fail to give new impetus to the growth of the national economy in 2021. The latter should record a growth rate of 5.2%, i.e. 0.4 point more than the 2021 Finance Law forecasts.
With regard to public finances, the execution of the 2021 Finance Law at the end of March is in line with forecasts, reinforced by an increase in revenue in terms of IR, VAT and Customs, which offsets the significant drop in corporate tax.
As of March 31, 2021, these guarantee products covered 93,419 bank loans for a total amount of 61.5 billion dirhams in favor of companies, which is in line with the objectives set at the level of the recovery plan initiated by King Mohammed. VI.
In order to support the request expressed by private and public economic operators and also allow the finalization of files still being formalized, it was decided to extend to June 30, 2021, the benefit of the State guarantee (“Damane Relaunch ”).
Given the persistence of the negative effects caused by the Covid-19 health crisis on certain vulnerable branches of activity, the CVE has decided to extend several support measures in their favor until June 30, 2021.
These are, in this case, allowances, family allowances as well as AMO for the benefit of employees in the tourism sector, catering, the activities of caterers and event service providers, those of amusement parks and games, nurseries, private sports halls as well as the press sector and cultural and creative industries.
All of these measures, which concern approximately 102,000 employees, are financed by the Special Fund for the management of the Coronavirus pandemic “The Covid-19”.
In addition, and taking into account the worrying evolution of the health situation in our main European partners and the restrictive measures that have been put in place to stem its worsening, the CVE will continue to closely follow the evolution of the situation, in particular that of the most affected economic sectors, in consultation with the ministerial departments concerned.