The deadly earthquake that shook Morocco last week is unlikely to have a major impact on the country’s economy, according to Capital Economics. “From a purely economic standpoint, it [the earthquake] should only have a small and short-lived impact on GDP,” said a briefing released on Monday by the London-based think tank. Besides, the country’s foreign reserves, estimated at $32.8 billion, account for more than double its external financial requirements, the report added. Hence, the country’s fiscal position gives the government enough room to loosen its fiscal policy by launching relief packages to those most affected by the earthquake, the report said. Like most emerging markets, the Moroccan economy has been grappling with the compounded impact of the global pandemic and the Russian invasion of Ukraine.

Source: The North Africa Journal September 12, 2023 09:47 UTC