The recent devastating earthquake in Morocco, which claimed the lives of over 2,800 people, has the potential to inflict significant damage on the country’s economy. According to estimates from the US Geological Survey (USGS), the earthquake could result in losses equivalent to as much as 8 percent of Morocco’s gross domestic product (GDP). With the country’s GDP reaching $134.18 billion in 2022, an 8 percent reduction would amount to approximately $10.7 billion.
The USGS, responsible for monitoring earthquakes worldwide, has cautioned that the extensive damage caused by the earthquake is likely to have severe economic consequences for Morocco. The earthquake, measuring 6.8 magnitude, struck the Atlas Mountains, approximately 70 kilometers (44 miles) south of Marrakesh, a popular tourist destination. Its relatively shallow depth of 18.5 kilometers (11.5 miles) contributed to its significant impact.
The aftermath of the earthquake has resulted in a tragic loss of life, with thousands of people injured. Emergency responders are working tirelessly to rescue survivors amidst the rubble. Recognizing the urgency of the situation, several countries have stepped forward to offer assistance. The European Union pledged 1 billion euros ($1.07 billion) in humanitarian aid, while countries such as the UAE, Saudi, Qatar, Britain, Spain, and France have also extended their support.
Impact on tourism
The economic repercussions of the earthquake are concerning, particularly for Morocco’s tourism sector. Marrakesh, a popular tourist hub, had only just begun recovering from the impacts of the COVID-19 pandemic. The earthquake’s aftermath could further hinder the tourism industry, potentially leading to a decline in visitor numbers for the remainder of the year. This could have a significant negative impact on the country’s overall economic performance.
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Türkiye
It is worth noting that Morocco is not the only country to have experienced the economic consequences of a devastating earthquake. Türkiye, which faced a major earthquake earlier this year resulting in significant loss of life, saw its tourism sector rebound due to a high influx of international visitors. However, the economic damage caused by the earthquake in Türkiye amounted to 4 percent of the country’s GDP in 2021, as reported by the World Bank.
$3 million in BNB for affected users
Binance Charity has taken action in response to the recent devastating earthquake in Morocco. They have announced an airdrop of up to $3 million in BNB (Binance Coin) to Binance users residing in the affected areas. The identification of eligible users will be based on Proof of Address (POA) completed before September 9, 2023, specifically in the Marrakesh-Safi Province, which suffered the most significant impact. Each user who completed POA in that area before the specified date will receive $100 in BNB directly to their Binance accounts.
Acknowledging that some users in the affected region may not have completed POA yet, Binance Charity will also provide a donation of $25 in BNB to existing users who complete POA after September 9, 2023, but before September 30, 2023.
Additionally, active transacting users across Morocco who are not in the affected area will also receive an airdrop of $10 in BNB each. It is estimated that around 70,000 Binance users in Morocco will benefit from these efforts, with the distribution of funds commencing on September 12, 2023.
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