"In the medium term, taking into account the data of the 2021 Finance law, and assuming continued mobilization of specific financing, fiscal consolidation would gradually resume, and the non-privatization deficit would decline to 6.5% of GDP in 2021 and 6.4 % in 2022," Bank Al-Maghrib pointed out Tuesday following the last quarterly meeting of its Board for 2020.

Direct debt of the Treasury would increase by 11 GDP points to 76% at the end of this year and reach 79.3% of GDP by the end of 2022, it added in a statement.

Concerning public finance, BAM underscored that "budget execution for the first eleven months has ended in a non-privatization deficit of MAD 59.2 billion, thus widening by MAD 14.2 billion compared to the same period in 2019, taking into account the positive balance of MAD 8.3 billion of the Special Fund for the Covid-19 Pandemic Management."

Overall expenditure increased by 1.9%, mainly reflecting higher expenditure on other goods and services as well as on the wage bill.

Ordinary revenues excluding privatization decreased by 6.3%, mainly as a result of a 7.6 % decline in tax revenues, Bank Al-Maghrib said.