Holding of the 12th meeting of the Economic monitoring committee : 02/04/2021

Holding of the 12th meeting of the Economic monitoring committee

The Economic monitoring committee held its 12th working meeting on Friday, April 2nd 2021, via video conference. The following items were recorded at the meeting agenda:

  • Review of recent developments in the economic situation and national financial;
  • Extension until the 30th June, 2021 of warranty offers and several support measures relating to the eight signed program contracts: Tourism, restoration, catering and events, playgrounds and amusement parks, press, cultural and creative industries, private gyms and nurseries

  • Recent developments in the economic and financial situation

The review of the economic and financial situation in 2021 bodes well for positive development of economic activity. According to the orientation which shows a favorable trend in the main economic indicators (foreseeable increase in GDP quarterly of 0.5% in Q1-2021, rebound in cement sales of 3.9% in T1-2021, increase in MLA receipts of 22% at the end of February ...), even if certain sectors of activity are still plagued by recessionary tensions, including tourism (drop in tourist arrivals by 81% at the end of February), aeronautics (drop in exports of -22.7% at the end of February) and certain tertiary activities.

It must be emphasised also that certain export-oriented sectors, particularly automotive and textile and clothing, are showing signs of economy deceleration, in regard with the situation of the European markets that are severely affected by the new wave of the pandemic.

The favorable prospects for the agricultural season and the exemplary development of the vaccination operation, are all factors that would not be missing to breathe new life into the growth of the national economy in 2021. The latter should register a growth rate of 5.2%, i.e. 0.4 percentage point more compared to the forecasts of the 2021 Finance Law.

With regard to public finances, the execution of the 2021 Finance Law at the end of March, in line with forecasts, bolstered by higher revenue in terms of the Income Tax, VAT and Customs Duties which offsets the decrease important of the Corporate Tax.

  • Extension of the "Damane Relance" guarantee offers:

The EMC noted with satisfaction the positive results obtained by means of the various guarantee products put in place to cover the financing needs of companies affected by the Covid-19 crisis. As of March 31st 2021, these guarantees 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 His Majesty the king, may God assist him.

In order to support the demand expressed by private economic operators and public and also allow the finalization of files still in formalization progress. it was decided to extend to June 30th, 2021, the benefit of the State's guarantee ("Damane Relance").

  • Extension of the support measures relating to the eight signed program contracts

Given the persistence of the negative effects caused by the health crisis of Covid-19 in certain vulnerable activities, the EMC has decided to extend several support measures in their favor until June 30th, 2021. These are, in this case, allowances, family allowances as well as AMO for the benefit of the employees in the tourism sector, restoration, activities of caterers and event providers, those of playgrounds and amusement parks, nurseries, private gyms as well as the press sector and cultural and creative industries. All of these measures which concern approximately 102,000 employees, is financed by the Special Fund for management of the Coronavirus pandemic "The Covid-19".

Furthermore, and taking into account the alarming evolution of the pandemic situation among our main European partners and restrictive measures which have put in place to stem its worsening, the EMC will continue to monitor after the evolution of the situation, in particular that of the most impacted, in consultation with the concerned ministerial departments.