Welcome to this week’s edition of our Weekly Risk Watch, where we provide concise insights into economic indicators, political developments, and security updates that may affect your business or daily life.
Economy and Markets
- Morocco’s Mediterranean coast is experiencing a slower tourist season compared to last year. Apartment owners in the region note a decrease in Moroccan visitors, resulting in apartments being offered at lower-than-usual prices for this time of year, reflecting cautious anticipation for August and potentially less bookings than last year.
- A recent World Bank report on Morocco’s Economic Monitor underscored the significant challenges confronting the national economy. The report highlighted an increase in corporate bankruptcies and the loss of 200,000 jobs in rural areas over the past year, reflecting ongoing struggles for businesses and households to recover from recent economic shocks.
- A farming union in Spain is urging the Spanish Minister of Agriculture to intervene and halt the sale of Moroccan agricultural products in the Spanish and broader European markets, proposing issuing ‘health warnings‘ for Moroccan agricultural products in response to concerns over market competitiveness and economic impact. Such practice could strongly affect the volume and reputation of Morocco’s agri-food exports.
- New data indicates that inflation in Morocco is projected to increase by 2.2% next year, a figure lower than the Bank Al Maghrib’s previous forecast of 2.7% in its recent board meeting. The indicator is expected to stabilize at 1.8% by the end of this year, down from a peak of +6.4% reported last year, according to the latest data. While lower inflation can initially benefit consumers by keeping prices stable, it may also indicate weak demand and economic activity.
Political Stability
- The Moroccan government is planning to review strike laws, after dialogues with Trade Unions. The news was met with mixed reactions, with fears of limiting the constitutional right and increasing social tensions.
- Amid ongoing protests and boycotts from medical students, the government denied calling the students “traitors,” but the Ministries are maintaining their reform plans despite massive discontent.
- Nizar Baraka, Minister of Equipment and Water, emphasized the need to combat illegal quarries and the importance of sustainable exploitation to ensure water and environmental efficiency amid concerns of “quarry gangs.” Such illegal activities could worsen Morocco’s water scarcity challenges.
- Students at Al Akhawayn University in Ifrane, Morocco, launched a petition condemning a recent visit by a group of their peers to Israel. The petition has garnered over 1,180 signatures, and is part of nation-wide student moves demanding limiting academic cooperation between Morocco and Israel.
- Health unions in Chefchaouen province, including major labor groups, staged a protest march from Mohammed V Regional Hospital to the city’s Health and Social Protection Delegation. The demonstration highlights significant discontent within the health sector, posing political risks related to labor grievances and calls for better working conditions and protections.
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Moroccan cities saw widespread protests in solidarity with the Palestinian cause after a student was denied a diploma for wearing a keffiyeh. Demonstrations spanned 42 cities with 95 protests, emphasizing the keffiyeh as a symbol against Israeli occupation and normalization. These ongoing demonstrations, continuing for ten months, highlight significant political tension and nationwide support for Palestine in Morocco.
Security
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Summer heat waves in Morocco’s inland cities raise concerns, particularly among elderly residents who are vulnerable to high temperatures. Some families relocate to cooler coastal areas, but elderly individuals unable to travel remain at risk during this heat wave.
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A vigil by the Moroccan Association for Human Rights (AMDH) in Faqih Ben Saleh was dispersed by authorities for violating public gathering rules. AMDH president Aziz Ghali and others required medical attention afterward, highlighting ongoing security concerns around public demonstrations in the region.
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