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Morocco Q1 GDP growth slows to 1.9 pct year-on-year

Mon 2 Jul 2007, 11:27 GMT
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RABAT, July 2 (Reuters) - A slump in agriculture meant Morocco's gross domestic product (GDP) growth slowed to 1.9 percent in the first quarter from 6.7 percent a year earlier, the country's High Planning Commission said on Monday.

Farm production fell by 18 percent in the first three months of 2007 compared to the same period a year earlier, the HCP said in a statement on its Web site, while non-agricultural growth was 4.7 percent.

Construction and public works grew 9.3 percent, underpinned by a state-backed infrastructure and housing drive. The hotel and restaurant sector expanded by 8.1 percent as more tourists visited the kingdom.

Growth of GDP in the trading sector slowed to 4.3 percent from 6.9 percent a year earlier, the HCP said, without giving a reason.

Farming accounts for up to 17 percent of Morocco's economy but the figure varies widely because of cyclical droughts. Last year saw the best grain harvest in 10 years.

The HCP has forecast growth of 1.6 percent this year, down from 8.1 percent in 2006, proving Morocco still has far to go to free its economy from the uncertainties of farming.

With poverty and unemployment rife, the government is trying to create more jobs by expanding existing industries such as tourism and textiles while pushing into new areas like back-office outsourcing.

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