State intervention modalities and the effectiveness of fiscal and financial recovery in Morocco: The case of COVID-19

Abstract

The pandemic crisis that severely affected economies worldwide did not spare Morocco, resulting in an unprecedented socioeconomic and health crisis. To cushion the shock and revive the economy, a comprehensive set of fiscal measures was implemented, including tax reductions, fiscal incentives, rationalization of ordinary expenditures, and an increase in public investment efforts. At the same time, major projects and structural reforms were launched in the economic, social, and governance spheres. These developments inevitably led to significant public deficits and an unprecedented level of public debt. This situation raises real challenges regarding financing and the sustainability of public finances, which remain heavily dependent on the pace of economic recovery and the health outlook.