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Morocco - Diversified economy keeps the growth up

Edited by George Haddad

Saturday, 08 August 2009 14:32

Morocco_-_Diversified_economy_keeps_the_growth_up

Morocco's GDP growth has risen by a third over 1998-2008, moving from 3.3% over 1990-1998 to 4.3% between 1998 and 2008, High Planning Commission has said.
HCP said in its latest report on growth and human development that services and building and public works have enhanced Morocco's economic growth over the reporting period, with growth less and less dependent on agriculture.

It reported that the GDP growth, exclusive of agriculture and fisheries, has moved from 3% over 1990-1998 to 4.8% over 1998-2008.

The commission added that services' contribution to GDP has gained 4 points over this period against 1.7 point over 1990-1998. As for building and public works' contribution, it gained 1.8 point compared with a drop of 0.7 point, while agriculture lost 4.7 points against a rise of 1.1%.

HCP noted that the balance of payments, which posted an average surplus of 1.5% up to 2006, has increasingly been showing a deficit since 2007 (0.1% in 2007, 5.4% in 2008).

As for inflation, it was contained at a year-on-year rate of 1.9% between 1998 and 2008 as against 4.9% a decade earlier.

Well prepared

Morocco’s economy has "remarkably" weathered the crisis and is well prepared for the post-crisis, French economist, professor Henri Védié, said.

"Morocco's economy is indeed resilient thanks to a sound financial system and steady foreign direct investments," Henri said in an interview published by the French daily "Les Echos".

He highlighted the upgrading efforts and the progress achieved by the kingdom, stressing that tourism is "a key element" of Morocco's economy.

The North African country has also paid special attention to the environment and opted for an environment-friendly tourism.

Diversified economy

Achievements made by Morocco in the economic field over the past decade show the gradual progress of the country's economy that has become sounder and more diversified, Managing Director of the International Monetary Fund said on Tuesday.

The past ten years were the most productive for the north African country's economy, Dominique Strauss Kahn told Medi1sat TV channel on the occasion of the 10th anniversary of the enthronement of H.M King Mohammed VI.

"Figures are available to testify to this fact," he said, noting that the growth registered during the past decade exceeded that of the nineties by an average of 2%.

Though things remain to be done in terms of upgrading Morocco's economy, which is getting closer to the more developed economies, he said.

Diversification was a "positive aspect" of Morocco's economy, he said, adding that the more economy is diversified, the less volatile it becomes.

Referring to the global downturn, Strauss Kahn lauded Morocco's banking system which proved its soundness and stability.

Unemployment falls

Morocco's unemployment rate fell to 8% in the second quarter of 2009, down from 9.1% in the same period of 2008, High Planning Commissioner, Ahmed Lahlimi Alami said.

Speaking at a press conference, Lahlimi said unemployment dropped from 14% to 12.6% in urban areas and from 3.9% to 3% in rural areas.

The decrease in unemployment rate benefited mainly rural population aged between 15 and 24 (- 2.1 points) and young urban population aged between 25 and 34 (2.8 points).

However, unemployment among urban citizens belonging to the 15-24 age bracket rose from 30% to 30.7%, he noted.

The number of unemployed fell to 911,000 in the second quarter of 2009, down from 1,033,000 in the same period of 2008, the Moroccan official underlined.

The Moroccan economy generated in the second quarter 232,000 jobs, of which 196,000 were created by the sectors of agricultural, forests and fisheries, Lahlimi said, noting that industry and handicrafts lost 7,000 jobs.

Global Arab Network