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COVID-Driven Unemployment in Morocco

Employees work on a Moroccan ventilator at a factory in Casablanca following an outbreak of the coronavirus disease (COVID-19), in Casablanca, Morocco April 10, 2020. REUTERS/Youssef Boudlal
Employees work on a Moroccan ventilator at a factory in Casablanca following an outbreak of the coronavirus disease (COVID-19), in Casablanca, Morocco April 10, 2020. REUTERS/Youssef Boudlal
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COVID-Driven Unemployment in Morocco

Employees work on a Moroccan ventilator at a factory in Casablanca following an outbreak of the coronavirus disease (COVID-19), in Casablanca, Morocco April 10, 2020. REUTERS/Youssef Boudlal
Employees work on a Moroccan ventilator at a factory in Casablanca following an outbreak of the coronavirus disease (COVID-19), in Casablanca, Morocco April 10, 2020. REUTERS/Youssef Boudlal

The Moroccan Minister of Economy, Finance, and Administration Reform, Mohamed Benchaaboun, said Monday that the implementation of the 2020 finance bill has shown a MAD13.8 billion (USD1.38 billion) decline in revenues by the end of August, compared to the same period in 2019.

The minister estimated that the year 2021 would see a drop of MAD20 to MAD25 billion (USD2 to USD2.5 billion) in tax revenues compared to 2019.

He noted that the novel coronavirus pandemic increased the unemployment rate, expecting it to reach 13 percent in 2020 compared to 9.2 percent in 2019.

This is a result of forecasts that the gross domestic product will drop by 5 percent, and 227,000 jobs will be lost in the non-farm sector in addition to 78,000 jobs in the farm sector.

Further, Morocco had lost 589,000 jobs between the second two quarters of 2019 and 2020.

During the second quarter of 2020, the unemployment rate hiked by 4.2 percent reaching 15,6 percent in urban environments. Youths of ages ranging from 24 to 34 saw the highest rate of unemployment up to 22.6 percent.

In rural areas, unemployment rose to 7.2 percent.

The minister revealed that the financial bill would focus on social sectors, while creating 1,500 job opportunities in the health sector and 2,000 in the education sector.

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Lebanon’s Struggling Economy Slides Toward Full Recession

The Jousieh crossing between Lebanon and Syria following an Israeli strike on October 25. (AFP)
The Jousieh crossing between Lebanon and Syria following an Israeli strike on October 25. (AFP)
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Lebanon’s Struggling Economy Slides Toward Full Recession

The Jousieh crossing between Lebanon and Syria following an Israeli strike on October 25. (AFP)
The Jousieh crossing between Lebanon and Syria following an Israeli strike on October 25. (AFP)

The ongoing Israeli war on Lebanon has led to significant economic losses estimated between $10 billion and $20 billion.

This range reflects the difficulty in accurately assessing the damage amid Israel’s ongoing military operations, including airstrikes and ground attacks.

The destruction of homes, infrastructure, and farmland has contributed to a state of uncertainty, along with an unprecedented wave of displacement affecting many families.

Experts agree that reliable economic data is hard to obtain while the conflict continues.

Reports from the Ministry of Health and international organizations said nearly 3,000 people have been killed and around 15,000 injured, mostly civilians.

Additionally, about 1.4 million people have been displaced from their homes, representing roughly a quarter of Lebanon’s population.

Growing economic crisis ahead

The war came at a time when Lebanon’s economy was already struggling after five years of crisis.

According to Mohammad Choucair, head of the Economic Bodies Association, the situation is worsening rapidly, threatening serious economic and social consequences.

Current estimates suggest that direct losses from the conflict could reach between $10 billion and $12 billion, impacting various sectors.

As the war continues, key sectors like tourism, agriculture, and trade are experiencing a sharp decline in business activity.

Many small and medium-sized enterprises are being forced to close or suspend operations due to direct damage from attacks, reduced consumer demand, and disruptions in trade and supply chains caused by the influx of displaced people.

International financial institutions are warning that the ongoing Israeli attacks could continue for several more months, possibly lasting until mid-2025.

The Institute of International Finance (IIF) forecasts a 7% contraction in Lebanon’s GDP by the end of this year, followed by a 10% decline next year.

This would bring the total economic decline to nearly 60% from the peak GDP of around $53 billion recorded at the end of 2018.