The mood on the street can change quickly – today 24

Economist Rachid Oraz called on the government to address the inflation problem in a short period before things get worse, adding in an article published Monday on the Middle East Center website that Morocco may appear stable, but history indicates that this stability will not last. , and that the popular mood on the street can change quickly.
The same expert mentioned chanting slogans in the stadiums calling for the departure of the Prime Minister, due to the current circumstances and the lack of communication by the government, reiterating his statement that “the time to act and act is now.”
Like the United States and Europe, adds Auraz, “Morocco, for its part, has witnessed a recent increase in inflation rates, registering a rate of 6.4 percent during July 2022, which is inflation coming from from abroad, according to the same expert, and it is called “imported inflation”.

The aforementioned inflation has led to a situation that is brewing, and the Government is looking at it, continues the same expert, “with great apprehension, especially since Morocco managed in the past to avoid galloping inflation in the Middle East and North Africa , which has affected much of it over the past decade.”

Auraz attributed this circumvention to Morocco’s “sound monetary policy that allowed the country to keep inflation to a minimum in the past, but now the situation has changed and the domestic monetary policy is not able to cope with the external factors that have caused the recent upload. in prices

According to the same spokesman, the government faces a difficult situation, as high inflation is accompanied by a slowdown in economic growth, noting that last March, Bank Al-Maghrib expected a growth rate of 0.7 percent for 2022. , before adjusting its estimates in June to about 1 percent.

This represents a sharp drop, explains the same expert, “compared to the growth rate of 7.9 percent in 2021, where the numbers between the inflation rate and the growth rate seem inverse, since while inflation rises , economic growth decreases, and this puts society’s stability at stake”.

The Covid-19 crisis, together with the stagnation of annual GDP per capita for the last decade, has exhausted the middle and working classes, and this situation has especially affected workers in the informal sector, which represents 30% of GDP. and occupies 70%. of employment in the country.

In these circumstances, inflation places a heavy burden on families and businesses, and can undermine social stability, as the long and recent history tells us, in the words of Oraz.