The Moroccan finance minister unveiled some worrying numbers about the state of the economy.
By Siham Ali for Magharebia in Rabat
![[AFP/Abdelhak Senna] Economy and Finance Minister Nizar Baraka says Morocco is facing a liquidity crisis stemming from the worldwide economic slowdown.](http://www.magharebia.com/cocoon/awi/images/2012/08/06/120806Feature2Photo1.jpg)
[AFP/Abdelhak Senna] Economy and Finance Minister Nizar Baraka says Morocco is facing a liquidity crisis stemming from the worldwide economic slowdown.
After holding out for years, Morocco’s economy is starting to deal with the fallout from the world economic crisis.
Such was the message from Economy and Finance Minister Nizar Baraka on Friday (August 3rd) at a government meeting.
Morocco has problems with its primary liquidity, which fell by 60.4% over the second quarter of 2012, the minister said. Transfers coming in from Moroccan expatriates have dropped by 4.6%. Currency reserves are only enough to cover four months.
According to Baraka, this is a line which must not be crossed. To deal with the situation, the central bank has injected 59 billion dirhams into the economy.
“The lack of liquidity could have a dangerous impact on investment, given that investors will have lower confidence about their plans,” economist Amine Senhaji explained to Magharebia.
Other indicators are also negative. The trade deficit has increased by 5.9% over just six months. There has been a slow-down in industries producing exports. The electronics industry, for example, has seen an 11% drop. The tourism sector, upon which Morocco relies, has shrunk by 1.6%.
Moroccan deputies expressed their concern over the figures.
The weight of the economic crisis is now being felt by Morocco, whereas in the past it was said that the kingdom was spared the problems of the international situation, said Ahmed Zaydi, who leads the Socialist Union of Popular Forces in Parliament. He called for assessing the repercussions for the public and putting the necessary solutions in place.
Despite the troubling indicators, Baraka affirmed that the situation remains “manageable for now”.
“Growth is expected to be 3.4% this year,” he said. “The Moroccan economy is still producing. There are risks. So we need to remain vigilant about the future.”
Idriss Azami el Idrissi, the minister delegate responsible for the budget, said that even though the figures are “shocking”, the government will act by introducing new measures to tackle the crisis.
According to Senhaji, there are a number of solutions to be considered, including a change of direction in public investment, which stands at 180 billion dirhams in 2012.
“Given the delay in getting the finance bill passed, those investments will not be fully implemented,” the economist said. “So we need to direct them elsewhere to keep the crisis in check.”
Meanwhile, concerns are growing among the public.
Safae Ibrahimi, a nurse, hopes that Morocco will be able to get through this ordeal. “It’s concerning when you see extreme scenarios like the Greek crisis. I hope we’re not going to get to that stage,” she said.
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