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Slower Morocco exports to hit growth - planning body

Fri 15 Feb 2008, 12:22 GMT
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RABAT (Reuters) - Moroccan growth is seen at 6.1 percent this year, below the government's estimate of 6.8 percent, as slow growth in overseas markets will cut export growth, the country's main planning body said on Friday.

The High Planning Commission said "unfavourable" economic conditions abroad will reduce export growth to 5.6 percent this year from 7.6 percent in 2007.

Morocco's exports are engine of the country's growth. Exports of farm products, textiles and industrial components account for about half of total exports and around a third of total employment, according to official figures.

The government expects growth of 6.8 percent this year after estimated 2.5 percent growth last year.

The Commission said the economy grew by 2.2 percent last year as drought slashed the cereals harvest to 2.0 million tonnes from 8.3 million tonnes in 2006 when overall economic growth was 8.1 percent.

It sees this year's cereals harvest at 6.0 million tonnes, which will enable the farm sector to grow 12.5 percent this year after contracting 19.4 percent last year.

Agriculture in Morocco accounts for up to one-fifth of gross domestic product and provides almost half of the jobs for the country's 11 million-strong workforce, according to official data.

The Commission expects an inflation rate of 3 percent this year versus an estimated 2.3 percent rate for 2007 and the government's projected rate of 2 percent this year.

 
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