A Cold Wind from Europe blows on the Moroccan Economy
“The international environment has greatly deteriorated since the first quarter, with growth zero and a recession in partner countries" from Morocco,the governor of the Bank Al Maghrib (Central Bank), Abdellatif Jaouahiri said recdently.
Source : https://www.marocafrik.com/english/A-Cold-Wind-fro...
As a result, the growth rate for 2012 will be below 3%, sharply lower from the 4.8% forecast in the budget, he predicted.In the first quarter, it was 2.8% year on year against 5.6% for the same period last year, according to the High Planning Commission (HCP).
The poor agricultural season (which accounts for about 15% of GDP) due to a drought and cold snap and the weakening of activity in partner countries has worsened the situation.Foreign direct investment fell sharply during the past two years, the Kingdom has embarked on major infrastructure projects (ports, roads, zones, and export industries) for the future.
On Monday at an international conference organized by the largest Moroccan bank Atijarawafa Bank, the new president of Moroccan employers Miriem Bensalah Chakroun invited local businesses to make Morocco a hub to Africa and a gateway to the Middle East.
Favorable legislation has encouraged international export industries set up plants in Morocco with examples such as automotive group Renault and the aircraft manufacturer Bombardier investing hundreds of millions of dollars into the economy.
These projects, however, remain insufficient to create enough jobs in a country of 33 million people where a large percentage of the population lives in poverty and unemployment particularly affects young people at over 30 % in the cities..
After flirting with an average growth of 5% over the past five years, the foundations of the economy remain fragile as regards its performance as an emerging market economy..
Tourism has started the year on a negative note. He completed the first six months of nights in classified hotels down 4% over the same period last year, with a decline in visitors French, Spanish and German.
These last two sectors retain the shape, however, helping to offset somewhat the large trade deficit that reached the first half of the record of about 100 billion dirhams (9 billion), due to the oil bill which accounts for some 40% of imports.
Fortunately, Morocco's growth is driven by domestic consumption, encouraged by wage increases in the public sector and state subsidies to contain price increases. With the result, however, that the deficit has ballooned over 6% of GDP.
The poor agricultural season (which accounts for about 15% of GDP) due to a drought and cold snap and the weakening of activity in partner countries has worsened the situation.Foreign direct investment fell sharply during the past two years, the Kingdom has embarked on major infrastructure projects (ports, roads, zones, and export industries) for the future.
On Monday at an international conference organized by the largest Moroccan bank Atijarawafa Bank, the new president of Moroccan employers Miriem Bensalah Chakroun invited local businesses to make Morocco a hub to Africa and a gateway to the Middle East.
Favorable legislation has encouraged international export industries set up plants in Morocco with examples such as automotive group Renault and the aircraft manufacturer Bombardier investing hundreds of millions of dollars into the economy.
These projects, however, remain insufficient to create enough jobs in a country of 33 million people where a large percentage of the population lives in poverty and unemployment particularly affects young people at over 30 % in the cities..
After flirting with an average growth of 5% over the past five years, the foundations of the economy remain fragile as regards its performance as an emerging market economy..
Tourism has started the year on a negative note. He completed the first six months of nights in classified hotels down 4% over the same period last year, with a decline in visitors French, Spanish and German.
These last two sectors retain the shape, however, helping to offset somewhat the large trade deficit that reached the first half of the record of about 100 billion dirhams (9 billion), due to the oil bill which accounts for some 40% of imports.
Fortunately, Morocco's growth is driven by domestic consumption, encouraged by wage increases in the public sector and state subsidies to contain price increases. With the result, however, that the deficit has ballooned over 6% of GDP.
Source : https://www.marocafrik.com/english/A-Cold-Wind-fro...