Global Arab Network | Morocco achieves 7.8% economic growth

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Morocco achieves 7.8% economic growth

Global Arab Network - - Gamal Ragay

Monday, 05 April 2010 21:32

The Moroccan economy achieved, during the 4th quarter of 2009, a growth rate of 7.8%, compared to 3.1% during the same period of 2008, the state's statistics office Haut Commissariat au Plan (HCP) said.

At current prices, GDP increased by 8.7%,that is an increase in the general price level by 0.9%, the HCP added.

This growth was due to increases in both agricultural products' value added in volume by 26.9%, and in Non-agricultural GDP by 4.9%, according to the same source.

In terms of sectors, the HCP said that mining and energy rose by 10.2% in Q4 2009, compared to a decrease of 8.2% a year earlier.

Manufacturing and construction industries increased by 3.8% and 6.1% respectively.

Morocco's central bank, Bank al- Maghrib, decided to maintain the key interest rate at 3.25% and reduce the required reserve ratio by 2 percentage points to 6 percent as of April, 2010.

These measures were made in a "context where risks are slightly skewed to the upside and inflation central forecast is consistent with the price stability objective," said a statement released by Bank Al-Maghrib following its board’s meeting to examine recent economic, monetary and financial trends, and the inflation forecasts.

The Bank's decision to lower the required reserve ratio by 2 percentage points is due to the scope and sustained nature of liquidity shortfall on the money market and in view of forecasts concerning the change in liquidity factors.

The bank said headline inflation has been hovering around 0 percent for several months, standing at 0.1 pc in February, up from 0.7 pc in January 2010, adding that core inflation, which reflects the underlying trend of prices, has remained stable at around 0 percent.

This trend is mostly attributable to the decline in staple food prices, compared to the very sharp rises in the same period of last year, the bank's statement said.

The Kingdom has been classified in the "Investment grade" category, which acknowledges the achievements made by Morocco in various areas, Moroccan Finance Minister said.

Morocco is the 15th sovereign to have its foreign currency debt raised to this grade.

Salaheddine Mezouar added that this appreciation comes at a time when the Kingdom is gearing up to raise funds on the international financial market.

He pointed out that the upgrade would make it possible for the country to obtain better financing conditions on the financial market.

Standard and Poor’s said it also took into account the high political stability and the government's momentum for its reform programme, including large public works.

In this regard, Morocco's government says that its reforms over the past decade enabled it to better address the impact of the global slump on the country's economy.

It says that the Kingdom would maintain annual economic growth averaging five percent until 2012.

Global Arab Network

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