November 27, 2022

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Morocco: Expect a stunning wave of bankruptcy

Morocco: Expect a stunning wave of bankruptcy

October 30, 2022 – 6:00 pm – Economy

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Corporate bankruptcies are set to rise “amazingly” in Morocco according to Allianz Trade, the world leader in credit insurance, in its latest survey on the subject.

“In Morocco, the rise in corporate bankruptcies is one of the most exciting countries to study,” said Alliance. The insurer attributes this to “economic growth, revised down to less than 1% in 2022, higher energy bills, and higher interest rates and salaries.” This will significantly affect the profitability and cash flow of Moroccan companies.

Added to this is the additive effect of the energy shock and inflationary pressures, which have made the economic situation more sensitive and will lead to this particularly high level of corporate bankruptcy. According to the report, the effects of the economic crisis in Morocco “will become more severe in 2023. The exceptional support of the state and a high degree of stability of macroeconomic indicators have made it possible to better absorb external shocks.”

Allianz Trade concludes that in Morocco “due to the deep economic consolidation in the eurozone, but also due to the observed and expected increases in the key rate by Bank Al-Maghrib, the impact on Moroccan companies should follow a trend similar to that seen in Morocco.” expected for companies in the European Union.

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