Central bank governor calls for speedier reforms, developing finance
Morocco, Economics, 7/17/2004

Governor of Morocco's Central Bank, Abdellatif Jouahri, on Friday called for the hastening of reforms aimed at promoting rural areas and lifting obstacles impeding the creation of enterprises.

This came in the Bank Al Maghrib's 2003 report, the governor handed to King Mohammed VI in Tangiers (northern Morocco).

The Governor also stressed the necessity of enhancing industry and exports, improving public finance, insisting however that, though economic results and preservation of key balances were satisfactory, they have to be put within a middle-term vision so that they contribute to job creation and raising living standards.

"The economic and financial performance achieved in 2003 is broadly encouraging. Nevertheless, the rate of growth, although speeding up, is still insufficient and, above all, dependent on the state of the primary sector, which in turn is heavily exposed to the fluctuation in weather conditions," reads the report.

"Trade grew appreciably, inflation remained subdued and, with the notable exception of the European union, which continues to be Morocco's leading trading partner, growth speeded up in the main regions, but without improvement in the employment situation."

According to Bank Al Maghrib, "the year 2003 was characterized by a marked recovery connected with the easing of the international political tensions, the strength of the capital markets and the recovery of their performances, as well as by the downward adjustment of the exchange rate for the dollar against the euro."

"Growth speeded up from 3.2% in 2002 to 5.2% in 2003, with an increase of 18% in the value added of primary activities and of 3.2% in that of other sectors. However, while inflation was kept under control, having amounted to only 1.2%, the employment situation worsened slightly, with the unemployment rate reaching 11.9%. Thanks to the privatization receipts, the budget deficit was reduced, while still remaining slightly above the target of 3% of GDP set by Finance Act," the same source goes.

On transactions with foreign countries, the Report notes that imports grew up by 3.9%, while exports fell by 3.3% in the year under review owing to, on the one hand, cyclical factors affecting the contribution of fisheries and the activity of petroleum refining and, on the other, the contraction in sales of mineral products, especially phosphates.

Previous Stories:
  Morocco, France exchanges estimated at 5.2 Billion Euro in 2003   (7/6/2004)
  Moroccan city and Hollywood project twinning   (7/3/2004)
  IFC collaborates with Morocco in implementing best practices of SME's loans   (7/2/2004)

Please add a link on your webiste pointing to ArabicNews.com and bookmark ArabicNews.com & subscribe to our daily email news bulletin.

Search