Resilience analysis using an economic resilience index : case of Morocco

Abstract

Following the increasing occurrence of stocks in recent years, the contribution of economic policies to coping with shocks and strengthening the resilience of the economy has been highlighted. Economic resilience can be defined as the ability of a system to anticipate, absorb, cushion and bounce back from a major adverse event in a timely and efficient manner. This article attempts to estimate the resilience index of the Moroccan economy using the methodology proposed by Briguglio (2009) for the period from 2007 to 2022. According to this methodology, the resilience index is composed of 4 sub-index namely: the macro-economic stability index, the governance index, the social development index and the micro-economic market efficiency index. The results show a relative improvement in economic resilience following the absorption capacities accumulated in recent years, attributed in particular to macroeconomic fundamentals consolidation and to various reforms undertaken. That being said, the methodology used presents certain limitations since it attributes the same weighting to all the sub-indexes while they do not have the same impact on the degree of resilience of the economy. In this regard, we propose certain improvement, including: (i) the allocation of weightings at the level of each sub-index and (ii) the integration of other variables at the level of the macroeconomic stability.