Moody’s revised Morocco’s outlook from "stable" to "negative" owing to its "subpar" recovery prospects.
The kingdom is set to face headwinds from its “concentrated exposure” to sectors and trading partners hit hard by the coronavirus pandemic, the ratings agency said on Friday.
According to an International Monetary Fund report published this month, Morocco is expected to record an economic contraction of 7 per cent for 2020 while its fiscal deficit is expected to hit 7.75 per cent.
The country’s economy is projected to grow by 4.7 per cent this year as it recovers lost ground.
Moody’s expects the government’s debt to hit 76 per cent of gross domestic product, up from 65 per cent in 2019. The ratio is expected to stabilise below 80 per cent over the next three years.
The credit rating agency also forecast a gradual reduction in Morocco’s fiscal deficit to 6.5 per cent of GDP this year and 4.5 per cent in 2022 on the back of a modest recovery in revenue.
The pandemic and an ongoing drought that hit the farming industry mounted pressure on the North African country's economy last year.
Authorities responded with measures to contain the economic and social blow of the health crisis as they improved the level of social assistance last year.
Moody’s left Morocco’s credit profile at "Ba1", which it said balances diminished economic and fiscal strength with moderate event risk exposure driven by risks in the banking sector.
It paid tribute to the country's “coherent macro policies and fiscal reform implementation over recent years”, including the elimination of fuel subsidies and the introduction of parametric public pension reform.
The rating was also backed by the government's health and social reforms and its “institutional capacity” to support state-owned entities.
Morocco’s credit profile was also supported by its large funding base in local currency and its continued access to domestic and external sources of funding at favourable terms.
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Combating coronavirus
Nick March: coronavirus dark cloud could have a silver lining
Gavin Esler: coronavirus offers a stinging rebuke to protectionists
Rashmee Roshan Lall: we will learn how to be vulnerable together
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Match info
Uefa Champions League Group B
Tottenham Hotspur 1 (Eriksen 80')
Inter Milan 0
Cricket World Cup League 2
UAE squad
Rahul Chopra (captain), Aayan Afzal Khan, Ali Naseer, Aryansh Sharma, Basil Hameed, Dhruv Parashar, Junaid Siddique, Muhammad Farooq, Muhammad Jawadullah, Muhammad Waseem, Omid Rahman, Rahul Bhatia, Tanish Suri, Vishnu Sukumaran, Vriitya Aravind
Fixtures
Friday, November 1 – Oman v UAE
Sunday, November 3 – UAE v Netherlands
Thursday, November 7 – UAE v Oman
Saturday, November 9 – Netherlands v UAE
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On Women's Day
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Anxiety and work stress major factors
Anxiety, work stress and social isolation are all factors in the recogised rise in mental health problems.
A study UAE Ministry of Health researchers published in the summer also cited struggles with weight and illnesses as major contributors.
Its authors analysed a dozen separate UAE studies between 2007 and 2017. Prevalence was often higher in university students, women and in people on low incomes.
One showed 28 per cent of female students at a Dubai university reported symptoms linked to depression. Another in Al Ain found 22.2 per cent of students had depressive symptoms - five times the global average.
It said the country has made strides to address mental health problems but said: “Our review highlights the overall prevalence of depressive symptoms and depression, which may long have been overlooked."
Prof Samir Al Adawi, of the department of behavioural medicine at Sultan Qaboos University in Oman, who was not involved in the study but is a recognised expert in the Gulf, said how mental health is discussed varies significantly between cultures and nationalities.
“The problem we have in the Gulf is the cross-cultural differences and how people articulate emotional distress," said Prof Al Adawi.
“Someone will say that I have physical complaints rather than emotional complaints. This is the major problem with any discussion around depression."
Daniel Bardsley
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Killing of Qassem Suleimani
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MATCH INFO
Uefa Champions League semi-final, first leg
Tottenham v Ajax, Tuesday, 11pm (UAE).
Second leg
Ajax v Tottenham, Wednesday, May 8, 11pm
Games on BeIN Sports
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Water waste
In the UAE’s arid climate, small shrubs, bushes and flower beds usually require about six litres of water per square metre, daily. That increases to 12 litres per square metre a day for small trees, and 300 litres for palm trees.
Horticulturists suggest the best time for watering is before 8am or after 6pm, when water won't be dried up by the sun.
A global report published by the Water Resources Institute in August, ranked the UAE 10th out of 164 nations where water supplies are most stretched.
The Emirates is the world’s third largest per capita water consumer after the US and Canada.
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