The COVID-19 pandemic led to the emergence of economic uncertainty in Morocco during 2020, with many consumers facing pressure on their incomes and questions over their ability to meet their regular financial negations. With key sectors of the country’s economy struggling due to the quarantine lockdown which was in place for several weeks between March and May, the strict approach to social distancing taken in the country and the closure of the country’s borders to foreign visitors for much of the year, many households faced substantial declines in their income, while unemployment rose throughout the country.
The emergence of the COVID-19 pandemic during 2020 resulted in Morocco’s leading lending banks focusing less on extending consumer credit to individuals in favour of loans for small and medium-sized enterprises. Spurring this shift in focus was the introduction of a number of government measures at end of 2019 that aimed to facilitate access to credit for small businesses.
Over the course of 2020, consumer lending gross lending recorded stronger growth than consumer lending outstanding balance. Indeed, growth rates in gross lending terms were double of those recorded in outstanding balance terms at current prices and this is the direct impact of the COVID-19 pandemic on the ability of Moroccan consumers to repay their loans.
Over the forecast period, it is expected that consumer credit in the Morocco will record a moderate performance, with growth in gross lending terms expected to outpace growth in outstanding balance terms. The economic uncertainty and unfavourable economic environment that have emerged from the COVID-19 pandemic are expected to continue having a detrimental impact on the personal finances of many Moroccans for some years to come, and this is likely to result in pressure on household incomes.
As mentioned above, lending to small businesses account for a relatively high proportion of total consumer credit in Morocco. More important, markers banks are increasingly interested in lending to small and medium-sized enterprises rather than individual consumers, for various reasons.
The unfavourable economic scenario that has emerged in Morocco as a result of the COVID-19 pandemic is likely to suppress the growth potential of consumer credit over the forecast period. The COVID-19 pandemic struck Morocco at a time when the cost of living was rising rapidly, especially for those living in major urban areas such as Casablanca, Fez, Tangier, Marrakesh and Rabat.
Files are delivered directly into your account soon after payment is received and any tax is certification is verified (where applicable).
Understand the latest market trends and future growth opportunities for the Consumer Credit industry in Morocco with research from Euromonitor International's team of in-country analysts – experts by industry and geographic specialisation.
Key trends are clearly and succinctly summarised alongside the most current research data available. Understand and assess competitive threats and plan corporate strategy with our qualitative analysis, insight and confident growth projections.
If you're in the Consumer Credit industry in Morocco, our research will help you to make informed, intelligent decisions; to recognise and profit from opportunity, or to offer resilience amidst market uncertainty.
This report originates from Passport, our Consumer Credit research and analysis database.
If you purchase a report that is updated in the next 60 days, we will send you the new edition and data extract FREE! Home Page