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Morocco stays essentially the most resilient financial system in North Africa

The automotive sector, whose international ecosystem impacts producers and gear suppliers in Morocco, shows a medium threat, in line with Coface.

Confronted with a fragile worldwide financial system, inflationary pressures and international financial tightening, Coface has revised downwards its progress forecasts worldwide and in all areas of the world, specifically Europe, in addition to its sector assessments. Regardless of this bleak international and regional image, Morocco stays within the small membership of essentially the most resilient economies in Africa, in line with the brand new nation threat map revealed by Coface which offers info on the danger of enterprise default.

The chance of enterprise default is growing in most international locations within the face of a fragile international financial system, inflationary pressures and international financial tightening. That is what emerges from the newest Nation & Sector Threat Barometer (third quarter 2022) revealed by Coface. On this context, the credit score insurance coverage specialist has considerably lowered its international progress forecast for 2023, which will likely be beneath 2%, in comparison with 2.8% in 2022 and 5.8% in 2021. The forecast progress subsequent 12 months would be the weakest since 2010. Whereas Coface has additionally revised down its progress forecasts in all areas of the world, Europe (Morocco’s most important financial accomplice) is definitely the one whose outlook has deteriorated. darker through the summer season.

Thus, a recession appears inevitable in all main European economies this winter, and most of them will even register unfavorable progress for the 12 months as a complete. On this gloomy image of the worldwide and regional financial system, Morocco stays, as soon as once more, within the choose membership of essentially the most resilient international locations in Africa, in line with the brand new nation threat map revealed by Coface. Regardless of a “B” ranking, reflecting a “pretty excessive” threat on this disaster context, the Kingdom has one of the best evaluation on the continent behind Botswana and Côte d’Ivoire (rated A4, or appropriate threat).

It needs to be remembered that Coface’s assessments (162 international locations) are globally located on a scale of 8 ranges of enterprise default threat: A1 (very low threat), A2 (low), A3 (passable), A4 (appropriate), B (pretty excessive), C (excessive), D (very excessive) and E (excessive).

Morocco rated greater than Algeria or Tunisia

Thus, in North Africa, Morocco continues to be essentially the most resilient nation with a greater rating than Algeria, Tunisia, Mauritania, Egypt (excessive threat) and even Libya (excessive threat). Word that on this new barometer, Coface downgrades 8 new nation assessments (Italy, Denmark, Switzerland, Cyprus, Luxembourg, Malta, Egypt and Chile) after the 19 already recorded within the second quarter.
On this troublesome international context, the credit score insurer additionally posted 49 sector ranking downgrades, which underline the sharp deterioration in situations in sectors delicate to the financial cycle. These are, specifically, the development, metals and wooden sectors. Confronted with the prospect of persistently very excessive international power costs, practically half of those 49 sector ranking downgrades relate to energy-consuming industries reminiscent of chemical compounds, paper and metals.

Medium threat for the automotive sector

It needs to be famous that 13 main sectors are assessed by Coface on a world and regional scale and in sure developed and rising international locations. The automotive sector, whose international ecosystem impacts producers and gear suppliers in Morocco, shows a mean threat within the 6 areas of the world assessed by Coface. Alternatively, the development sector shows a excessive threat in 3 areas and textiles-clothing in 4. Lastly, it needs to be famous that, just like the Worldwide Financial Fund (IMF) and Financial institution Al-Maghrib, Coface is warning concerning the battle targets between budgetary and financial insurance policies. “Whereas central banks are decided to battle inflation – no matter the fee – many are confronted with a battle of targets with the budgetary coverage carried out of their nation/area”, stresses Coface. Nationwide governments, combating in opposition to the contraction of exercise, have in truth multiplied measures to help the buying energy of households and the money movement of corporations. “The result’s a doubtlessly explosive cocktail for public funds: widening of the general public deficit and hovering financing prices,” warns the credit score insurer.

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