Moroccan GDP to reach 2.6% in 2005
Morocco, Economics, 2/14/2005

Moroccan Gross Domestic Product (GDP) is due to reach 2.6% in 2005, according to the High Commissionner for Planning (HCP).

The first trimester of 2005 will be characterized by a 4.2% decrease of primary economy ascribed to "a slightly weak cereals season," said a press release of the HCP which noted that the recent progress of the crop year shows the tendency for a weak agricultural production.

The 2.6% development of the GDP may, therefore, be subject to a decrease, it added pointing out it is not easy to affirm the extent of this decrease at this stage.

In general, the development of non-agricultural sector will continue in a relatively weak rhythm of 3%, thus generating a GDP growth of 1.9% in the first trimester of 2005, stated the HCP.

Mines would witness a period of slack due to the likely slow down in demand for fertilizers, generated by the possibility of a consolidation of world stocks in wheat and activity in the field of energy will shrink as refineries will go back to a normal production.

The clothing and hosiery industry would witness a slow down of export growth rate, because of the expiration of the multi-fibre accord, the release said noting a decrease of the household consumption; while personal consumption is due to reach about 4.5% for the year 2005.

Public consumption, according to the same source, is estimated at 5.3% during the year 2005, owing to the compensatory effect of between the revalorisation of some salary categories and the intensity of voluntary retirement.

As for external trade exchanges, orders addressed to Morocco "would be less rewarding than 2005" because of the high oil and raw-material prises, explained the release noting that the decreasing exchange rate of the US dollar in comparison to the Moroccan Dirham (MAD) may attenuate the impact of the plummeting imports on the trade balance.

On the other hand, the release went on, the positive tourism activities in 2004 will help consolidate Morocco's assets of hard currency, and, therefore, re-energize the economy as a whole.

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