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The macroeconomic impact is likely minor

Morocco’s Quake-Survivor Search Gets Foreign Help After Anger Over Slow Response

Monday 11/September/2023 - 05:33 PM
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Morocco began allowing teams from Spain، the UK and two Arab countries to assist in earthquake rescue efforts، as public anger grows over the domestic response to the nation’s deadliest natural disaster in six decades.

With the death toll now around 2،500 people، rescuers are racing against time as they search the hundreds of remote villages dotting the High Atlas mountains near the epicenter of Friday’s quake. Local media carried numerous reports of stricken Moroccans demanding much quicker help.

“People are still under the rubble and debris،” one resident from the village of Tafegaghte told local outlet Alyaoum 24. “My brother and I dug through the rubble with our own hands to extract our deceased parents،” she said، blaming local officials for standing aside.

The catastrophe dealt a shocking blow to Morocco، a country of 37 million that views itself an island of stability in North Africa and which has been a regional bright spot. The nearby city of Marrakech، partly damaged by the quake، is due to host annual International Monetary Fund and World Bank meetings in October.

There’s been no estimate yet of the total damage caused by the deadliest quake to strike Morocco since 1960، when 12،000 people were killed around the Atlantic coastal city of Agadir. Some analysts on Monday were divided over how seriously the disaster will hit the $140 billion economy، which relies on tourism، agriculture and trade with the European Union.

Economic Fallout

“While the affected area is large، the affected population is small and the macroeconomic impact is likely minor،” said Hasnain Malik، a strategist at Tellimer in Dubai. While a “short-term hit to tourist activity in Marrakech” is possible، that might be offset by a bump in remittances، he said in a note.

The Economist Intelligence Unit، meanwhile، foresees a wider impact on countrywide tourism، and losses of as much as 2% of real gross domestic product. “The recovery will stretch into 2024‑25 as reconstruction spending comes through، but much depends on how quickly tourism will rebound،” said Pat Thaker، regional director for Middle East and Africa.

Morocco’s dollar bonds slipped in late morning trade in London. The yield on the note solid in March and due 2028 rose four basis points to a new high of 6.17%.

The international rescue teams، including from Qatar and the United Arab Emirates، are deploying after Moroccan authorities carried out “a careful assessment of needs on the ground،” the Interior Ministry said in a statement.

“It’s possible that as the operations progress the assessment of potential needs may develop،” it added. Dozens of other nations، including former colonial ruler France and long-time foe Algeria، have made offers that have yet to be accepted.

Collecting donations

King Mohammed VI has ordered a special account to collect donations for the needy from citizens and local businesses. The funds will be used for an “emergency program of rehabilitation and support for the reconstruction of destroyed houses،” government spokesman Mustapha Baitas said Monday، in remarks carried by state radio.

The inaccessibility of the terrain is a major challenge، Michael Capponi، who heads the US-based Global Empowerment Mission Inc.، told Bloomberg by phone. The organization is deploying 15 rescuers mostly from Turkey in the mountain town of Moulay Brahim.

“People are on street corners without tents and without mattresses،” he said، urging authorities to speed the delivery of essentials. “When people don’t have food and water، agitations start.”