War in Iran and the blockade of the Strait of Hormuz are driving up oil prices. Facing this situation, Morocco’s economy is suffering significant cost increases that are reviving fears of strong inflation.
A prolonged closure of the Strait of Ormuz directly threatens emerging economies. Morocco is among the countries most exposed to a risk of recession if this geopolitical blockade exceeds the three-month mark.
The Minister of Housing presented the new orientations of the national housing policy to Parliament on Monday. Fatima Zahra El Mansouri has recorded a break with the old models, announcing a priority now given to the rental sector for the middle class while making a critical assessment of the previous social programs.
Despite global economic and geopolitical crises, Morocco retains its "B" rating in Coface’s latest Risk Review, confirming the solidity of its economy.
Advertisements for seized real estate properties sold at low prices at auction are multiplying on social networks in Morocco. Presented as lucrative opportunities under catchy titles, these sales hide a complex social reality, marked by an increase in mortgage defaults.
Cafes and restaurants in Morocco are facing a significant increase in the price of raw materials, particularly coffee, which has doubled in recent years. Despite this economic pressure, many establishments are keeping the prices of coffee-based drinks stable in order to preserve their customer base, impacted by the decline in purchasing power.
The Party of Progress and Socialism (PPS), the Socialist Union of Popular Forces (USFP), and the Unified Socialist Party (PSU) have denounced the dire economic situation in Fnideq, a border town with Ceuta, calling on local authorities to implement ambitious development projects to revive the local economy.
Moroccan students are not spared the effects of soaring inflation in France. The National Union of French Students (UNEF) announces an increase in tuition fees for international students and a rise of more than 6% in the cost of living starting in the new academic year in September.
Moroccan banks are facing a deterioration in the quality of their loans, despite greater selectivity in their lending, warns the American rating agency Fitch Ratings.
Real estate supply would be abundant and prices affordable, according to professionals and notaries, throughout Morocco. The reality is quite different.
The real estate market in Morocco has seen a downward trend in recent months, due to the severity of credit conditions. According to the latest dashboard of credits and bank deposits of Bank Al-Maghrib, this trend continues and real estate loans have seen a 4% drop between February 2022 and February 2023. Banks, for their part, are more vigilant and more selective in granting credit, due to the lack of visibility and the insolvency of clients.
With a "B3" rating, Morocco gets the best rating among the major economic powers in Africa in terms of country risk, ahead of Nigeria (D3), South Africa (C3), Egypt (D4) and Algeria (C3). This is revealed by the new Country Risk map for the first quarter of 2023, published by Allianz Trade.