Morocco to revive its economy following the implementation of its new development model

The budget is ready to combat the effects of the health crisis
Government of Morocco

 -   Government of Morocco

Aziz Akhannouch, head of the new Moroccan government, presented a draft law for the year 2022, which proposes new measures to revive the economy after the COVID-19 crisis.

Nadia Fattah al-Alawi, Minister of Economy and Finance, assures that the budget was made in accordance with the context, when signs of economic recovery began to show. 

Parliament approved the implementation of the development model with the aim of increasing the level of growth and reducing social inequalities by 2035. 

A number of objectives are expected to be achieved, including securing economic recovery to reduce unemployment, and providing young people with new job opportunities. 

The head of the Moroccan Network of Social and Solidarity Economy, Abdullah al-Suhair, stressed that the budget would mitigate the effects of the pandemic on the economy, as reported by Al-Arab.

Aziz Akhannouch
Aziz Akhannouch

The government intends to add new initiatives in the agricultural sector, boost the "Intilaaqah" programme, which began last year but stalled with the coronavirus crisis, and monitor the steps of young people in the labour market. 

According to World Bank data, the unemployment rate is expected to rise to 12% by the end of this year, and by 2022 it is expected to fall slightly to 11.5%. These percentages are higher than before the health crisis. 

New guidelines have been included in the draft finance law with the aim of reforming public sector institutions and strengthening governance. 

Following the approval of the new budget document by the Moroccan government leader, Aziz Akhannouch, it is stated that the doors will be opened to a large labour supply of almost 27,000 job opportunities in the public sector. 

Nadia Al-Alawi
Nadia Al-Alawi

In addition, the report on the development model aims to increase the contribution to the Gross Domestic Product to 8 per cent by 2026. 

The 2022 draft budget is pending approval by parliament, and will include new measures to reduce economic inequalities among citizens that, according to the World Bank, are expected to improve the level of the economy in the coming years. 

According to Al-Suhair, the consequences of the COVID-19 pandemic have wreaked havoc on most of the economy, including tourism, catering, transport and small and medium-sized enterprises, among others. 

However, he stated that the social and solidarity economy was most affected, almost on the verge of total collapse in sectors of the traditional industry, which is related to the tourism sector and festivities. 

Al-Suhair stressed that, in order to save this situation, a draft law for the sector must be prepared, and small and medium-sized enterprises must be supported through marketing and tax incentives, with the aim of the 2022 budget to form a new middle class in rural areas, as reported by Al-Arab. 

Also, the generalisation of compulsory health coverage will be strengthened to benefit non-salaried workers, integration mechanisms and social protection, including the most vulnerable and poorest groups. 

Al-Alawi also stated that new measures will be taken in relation to the generalisation of family compensation, highlighting the inclusion of people with disabilities and ensuring equality in different aspects of the economic and social spheres. 

According to the latest reports of the Central Bank of Morocco, the economy will experience a boom of 6.2% by the end of this year. This represents a growth of 0.9 points compared to its previous expectations in June, after having recorded a large decline in 2020 due to the consequences of the pandemic.